1.1 Introduction of Balanced scorecard
The concept of balanced scorecard was created by Art Schneiderman who is an independent consultant on the management of processes in 1987 at Anolog Devices, a mid-sized semi-conductor company. In 1992, Robert S. Kaplan and David P. Norton start publicising the balanced Scorecard though a series of journal articles and 1996 they published the Balanced Scorecard book.
The Balanced Scorecard is a performance planning and measurement framework, with similar ...view middle of the document...
Since its introduction, the Balanced Scorecard has been awarded a prize by the American Accounting Association as the “best theoretical contribution in 1997”.
The balanced scorecard (BSC) was developed in the 1990’s is to allow businesses to utilize both non-financial and financial measures in order to align business strategies and goals with the strategic plan. The goal of the balanced scorecard is to integrate the main organizational measures of success into a plan or framework if you will; a plan that is in alignment with the organizational mission, goals, strategic plan, and allows for modification in response to unanticipated change. Historically the balanced scorecard consisted of three components and was originally designed for private sector business application. To date the core aspects of the balanced scorecard are referred to by a number of things (perspectives, key performance indicators, drivers, measures, indices, etc.); and the original model has undergone several variations. It is important to continue to think critically about the KPI’s utilized. Incorrect KPI identification may result in costly and ineffective goals and strategies that prevent or deter organizational success.