Post by jannatara2896 on Oct 19, 2023 0:29:23 GMT -5
The creators of the BSC, Robert Norton and David Kaplan, talked about the method in their book “Strategy in Action”. According to them, financial metrics seen in isolation were very suitable for companies in the industrial era, but in the information age they are insufficient. Norton and Kaplan also reinforce that in current times value is also created through processes, technologies, customers, employees, innovation and many other business factors.
Compared to other consolidated methods in the business world, the Balanced Scorecard is a relatively new model of strategic management – developed in the 90s at Harvard. Despite this, it quickly became popular and was implemented by dbtodata.com several companies. As with other metrics models, data collection is crucial for BSC assessment, which is quantitative. After gathering this material, managers will interpret and use its information to make more assertive decisions for the future of the business.
A fundamental point about the Balanced Scorecard is that it aims to reinforce good practices in the development of organizational strategies. The 4 perspectives of the Balanced Scorecard, by Kaplan and Norton When developing the Balanced Scorecard, Kaplan and Norton divided the method into four perspectives: Financial Perspective; Customer Perspective; Internal Processes Perspective; Learning and growth perspective. By making this division into perspectives, the BSC allows management to use a strategic map and graphically explain to employees how the company creates value to achieve its greatest purposes.