Tuesday, 1 November 2016

The balance scorecard: an introduction

Hello readers, today I will be writing about the balance scorecard. The balance scorecard helps measure business performances. It looks at  4 different perspective of the business, they are the financial perspective, the customer perspective, the learning and growth perspective and the internal perspective.

The financial perspective looks at financial data such as sales revenue, cost and income to understand the financial performance of the business. Customer perspective measures the degree of success in satisfying customers. The quality and price can be used to determine customer satisfaction; feedback are also gotten from customers to know if their needs are being met.

Learning and growth perspective sees how business responds to changing circumstances. It looks at how employees are being trained, and how they use the knowledge obtained to create a competitive advantage for the company. The internal perspective looks at how efficient the business systems and procedures are; if goods are being manufactured well.

The balance scorecard can be used to achieve the goals of your business. It has its root in 8 different objectives which are a balance between short range and long range objectives, employee attitude, market share, personnel development, product leadership, productivity, profitability and public responsibility.

Thank you for reading this article. Keep checking out my blog regularly. Cheers!

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