Critically evaluate and discuss Balanced Scorecard Essay

Critically evaluate and discuss Balanced Scorecard - Essay Example customer issues, internal business processes, employing activities and share holders concern. Kaplan and Norton labelled the new tool the balanced scorecard. Many organizations have started using balanced scorecard in order to attain efficiency in their processes. Since it considers all the major components in an organization a total efficiency management is possible in an organization. The four components of balanced scorecard are properly managed in order to create a total efficiency. Balanced scorecard is a strategic planning and management system, which is extensively, used in business and industry, government, and non profit organizations for doing the business activities to the vision and strategy of the organization. Balanced scorecard is using for improving the internal and external communications and monitoring the organizational performance against the strategic goals of the organization. In earlier stage it was used for the measuring the simple performance of the organization to a full strategic planning and management. New card is focusing not only the performance measurement but also helping the managers what should be done and what should be measuring for attaining the organizational objectives in competitive basis. ... overall business strategy into specific, quantifiable goals and to monitor the organization's performance in terms of achieving these goals." (Balanced Scorecard Methodology, 2005). Competitive Advantage enables the company to operate in a more efficient manner and higher quality manner than the companies to compete with and which helping the company for getting higher more profit. "A competitive advantage is an advantage over competitors gained by offering consumers greater value, either by means of lower prices or by providing greater benefits and service that justifies higher prices." (Strategy -competitive advantage). Balance score card is focusing the strategy and its results and improving the organizational performance through measuring the measures in a competitive basis, Focusing on a basis of future performance and also which is used as prioritize projects and initiative basis. Kaplan and Norton described in the following manner, "The balanced scorecard retains traditional financial measures. But financial measures tell the story of past events, an adequate story for industrial age companies for which investments in long-term capabilities and customer relationships were not critical for success. These financial measures are inadequate, however, for guiding and evaluating the journey that information age companies must make to create future value through investment in customers, suppliers, employees, processes, technology, and innovation." (Gnanapoo, 2008). According to his perspective Balanced scorecard having the following areas, Learning and growth perspective Customer Perspective Financial Perspective International Business perspective (What is balanced scorecard 2007). The learning and growth perspective is related to the learning and development