Everyone knows that the highly successful balanced scorecard is created by two doctors named Robert Kaplan and David Norton and that such a tool has emerged as the number one device that organizations striving for success needs if they were to execute their strategies properly. The power of the balanced scorecard is in its focusing on the other aspects of performance and not just the financial one. It can also translate your company strategy into four different types of perspectives that offer performance measure indicators that are divided into customer, internal processes, financial and employee potential for learning and growth.
This integrated collection of different performance measures merely serves as a type of map of the strategy you wish to employ and allows you to view the direction you are headed,unlike other performance measures that only allow you a rearview mirror of your past financial results and performances. The balanced scorecard, as mentioned in Niven ‘s research work, is going to help you maximize your performance and maintain your organizational results. Niven offers two fundamental issues that you need to address in order to do this,which are 1) the reliance only on the financial measures and 2) the organization ‘s inability to perform and execute their strategies. Niven identifies how the balance scorecard can help companies work to resolve both issues and direct the organization to better and more satisfying results. Niven also maintains that the results of adopting the balanced scorecard will definitely – and pleasantly,shock you to the core.