The Balanced Scorecard approach is a tactical planning and management system that can be utilized significantly in non profit organizations, government, industrial and business purposes.
This is to support the organization ‘s vision and strategy and enhance the external and internal communications. Aside from that balanced scorecard approach monitors the performance next to the strategic the organization ‘s goals. The Balanced Scorecard approach was created by Drs. Robert Kaplan (from Harvard Business School) and David Norton. This is a performance measurement framework that further added the tactical non performance measures to the conventional financial metrics. This is to provide executives and managers an impartial view of the company ‘s performance. Before, the Balanced Scorecard approach was used as a simple performance measurement framework. But today it has developed to a full tactical planning and management system. This new development in the approach alters the company ‘s strategic plan from an attractive but inactive document to a marching order for the company. The Balanced Scorecard approach gives a framework that gives performance measurements as well as helps the organizers recognize what needs to be measured and done. This allows managers and executives to fully implement the strategies, objectives and goals of the company.
With the vagueness and weakness of the previous management approach, the Balanced Scorecard approach gives a comprehensive solution to what organizations today should measure to have a balanced financial perspective. The Balanced Scorecard approach is a system that improves organization ‘s ability to refine the strategy and vision and apply them in their respective organizations.