Balanced Scorecard

Balanced Scorecard

Introduction

Balanced Scorecard (BSC) (English - Balanced Scorecard ( BSC )) - the concept of transfer and decomposition of the strategic objectives for the planning of operations and control of their achievement. In fact, CSP is a mechanism for the relationship of strategic plans and solutions to everyday problems, a way to direct the activities of the company (or group) to achieve them. At the level of business process controls strategic activities through so-called key performance indicators (KPI) (English - Key Performance Indicator ( KPI )). KPI is a measure of the attainable objectives, as well as the characteristics of effective business processes and performance of each individual employee. In this context, the BSC is a tool not only strategic but also operational control ("Record Recovery in Business," 2009, p. 13).

The advantage of CSP is that the organization has implemented this system, receives a result of " coordinate system "of actions in accordance with the strategy at all levels of management and associate the various functional areas such as personnel management , finance , information technology , etc. it is wrong to regard the MSP-sided, from the perspective of a functional area. It attempts to make it extremely difficult to use and discredit the success of the concept (Rosenblatt, 1993).

History

Balanced Scorecard is a relatively new technology. Balanced Scorecard is based on findings of a study conducted in the early 1990s, Harvard Business School professor Robert Kaplan (Dr. Robert S. Kaplan) and president of the consulting firm Renaissance Solutions David Norton (David P. Norton). The study was conducted with the sole aim: to identify new ways to improve performance and achieve business goals.

Discussion

The essence of this system is briefly stated as the two main provisions:

Some financial indicators is not sufficient to fully and comprehensively (balanced) to describe the condition of the enterprise, they must be complemented by other indicators;

This system of indicators can be used not just as a comprehensive indicator of the state enterprises, and as a management system that provides a link between the strategic undertakings owners or top management and operational activities of the company's management (Dwyer & Fox, 2006).

The basic idea of ??structural BSC is to balance the system performance in four groups.

The first group includes traditional financial measures. No matter how we tried to prove the importance of market-oriented businesses and the perfection of internal processes, the owner is always first and foremost be interested in indicators of financial return on investment. Therefore, a balanced system should begin (in classification) and end (in the final evaluation) financial performance.

The second group describes the external environment of the enterprise, its relationship with customers. The main foci of attention are:

the company's ability to meet customer

the company's ability to retain clients

ability to acquire a new customer

profitability of customer

size of the market

market share in the target segment

The third group describes the internal processes of the enterprise:

the innovation process

product development

pre-production

supply ...