Balanced Scorecard for Banagas Essay Example | Topics and Well Written Essays - 4000 words

Balanced Scorecard for Banagas - Essay Example From this report it is clear that  Balanced Scorecard was created in 1992 by Robert S. Kaplan and David Norton. It is a method for measuring a company's activities in terms of its vision and strategies giving managers a comprehensive view of the performance of a business. Generally, Balanced Scorecard can be characterized as a strategic management system that forces managers to focus on the important performance metrics that drive success. It balances a financial perspective with customer, internal process, and learning & growth perspective.As the report highlights Balanced Scorecard from a financial perspective measures reflecting financial performance, for example number of debtors, cash flow or return on investment. The financial performance of an organization is fundamental to its success. It should be noticed that the financial perspective of Balanced Scorecard usually refers to the estimation and evaluation of the figures revealed in the company’s accounts (trying to l ocate the firm’s current performance) as they can analyzed and presented using the common financial analysis practices.  From a Business Process Perspective, Balanced Scorecard measures the reflection of the performance of key business processes, for example the time spent prospecting, number of units that required rework or process cost.  The evaluation of the firm’s strategy and aims – as part of the specific area of Balanced Scorecard analysis and implementation – has to be regarded as a challenging task.