Balanced scorecard was introduced by the economic intellectuals of Harvard Business School. Specifically Drs. Robert Kaplan and David Norton postulated this innovative management methodology and proposed it as a useful toll for all types of business and organizations. Since its inception, the balanced scorecard system of management has been successfully implemented by numerous business establishments around the world. Non-profit organizations and governments also adopted the system as their model management system. Entities that implemented the balanced scorecard system has posted significant growth rates and succeeded in their business operations. These highlight the effectiveness of balanced scorecard system as a new and powerful tool to business management.
The success of balanced scorecard system lies on its scalability, simplicity and adaptability. The system uses uncomplicated general performance metrics that can be applied to different business situations and environments. Managers can easily create metric templates that can be re-used and revised whenever a new project arises. Employees can also easily grasp the plans and the tasks assigned to them because balanced scorecard enumerates different work parameters that could be easily comprehended. Employees can also see their performance based on key performance indicators stated on the balanced scorecard. In this way, no task is left undone and problem areas can be addressed quickly.
Balanced scorecard started as a simple performance measurement tool. Its development into a comprehensive system as a management methodology greatly helped companies and organization. It made strategic planning simpler and it created a perfect system for managers to clearly define tasks and to evaluate those tasks accurately.