The corporate world has ever been changing. Businesses come and go but its increase is inevitable. With the latest technology, it is not surprising that more and more people are going into business. It is a must for every company to have a set of rules and objectives to be followed and achieved. No matter how broad it is, it should be implemented at all costs. The balanced scorecard process has been there since 1992. It was introduced to the business world by Dr. Kaplan and David Norton. Both have formulated this management tool which has benefited small and large companies worldwide. It is often used by company managers in presenting budgets, updating them and organizing them in such a way to be put under analysis.
Performance reviews and cause effect relationships are determined. This has led to its popularity especially in many government agencies, non profits, military units and schools. This is a record system that evaluates the overall performance and standing of the company. These measurements are very crucial in knowing which strategic initiative to use. This project management tool is further developed and improved to provide a more comprehensive framework to show the current standing of the company.
The financial aspect is not the only thing that matters in balanced scorecards. It is merely one of the components that will be included in the measurement. Other perspectives would be the customer, the employee and the stake holder ‘s view. It is very important that the company has past records to show the transition and to know which appropriate set of actions to use.