The balanced scorecard method has been developed to strengthen the strategic management capability of corporations. From being a simple performance document that records specific accomplishment of tasks, the balanced scorecard system has become the leading business process management methodology of big corporations and global conglomerates. The success of the system can be attributed to its built-in feature of making strategy the focal point of every corporate endeavor. Corporate strategy embodies the core competencies and the values of a company. If efforts are made to anchor objectives on strategies, companies will have a greater chance of success and survivability even in the most adverse economic environment.
The balanced scorecard management methodology, if used by corporations for their strategic management, should focus on four critical perspectives. These perspectives are customer service, human resources, financials, and business process organization. Central to these perspectives are corporate strategy, mission and vision. Every specific goal that is incorporated into the key company perspectives should reflect and serve the strategic objectives. It goes without saying that these strategic objectives embody the mission and vision of a company. So the effort of each component member of the company will perform duties that are anchored solidly on company strategy. Each accomplished task means that the corporate strategic goal is also being successfully carried out.
As a strategy and performance driven methodology, the balanced scorecard ensures the continued profitability of corporations. This measurement and management system also ensures the long term stability of a company in an increasingly competitive global market.