The global market has been continually changing and companies no longer consider the financial aspect as the only measure of performance. Robert Kaplan and David Norton of the Harvard Business School found out that there should be other aspects in the business process that need to be measured for performance in order for the business to be successful and move into the future. Their study was published and called the Balanced Scorecard. Today, the Balanced Scorecard has been used in other industries from businesses to universities. A University Balanced Scorecard typically follows the same aspects of the studies done by Kaplan and Norton.
A University Balanced Scorecard utilizes an institution ‘s intangible assets so as to include it in their future growth. It no longer recognizes just the financial assessment of the university but also includes it ‘s relationships with its clients and employees as a performance measurement. The University Balanced Scorecard will assess the public ‘s reaction on university continuing changes. It will also be maximizing their internal and external client base in order to take advantage of what they excel at before finally measuring their financial standing and cost-optimizing measures. The same four aspects are used–financial, customer, business, and learning–but all in a level that is specifically customized for the university.
The University Balanced Scorecard aims to reduce information overload by focusing only on the Kaplan-Norton assessment perspective. Again, it is important for the university to understand clearly and translate properly how their vision will be tested in order to implement the mission.