The Performance Measurement Of The Balanced Scorecard Essay
-A performance measurement tool
The balanced scorecard (BSC) is an extensively used performance measurement tool introduced to take the strategy and vision of the business into real action from four perspectives: financial, customers, internally progress and learning and grow. (Kaplan and Norton, 1996) From all these four perspectives, it can be seen that this measurement tool is different from others because it concentrates on both financial and operational information rather than only financial figures which make the tool provide a more comprehensive of the business to shareholders and customers. This essay aims at introducing the balanced scorecard from some aspects, including its origins, why business needs it, how it can be utilized, how the business can get benefits from adopting this measurement tool and what potential problems and limits it has.
In the modern business world, intangible assets take a larger proportion than tangible assets in the structure of total assets because the modern business tends to provide service more than products and shareholders and customers pay more attention to the intangible assets rather than tangible assets. However, the actual value of intangible assets is difficult to calculate and present in the real business. In this situation, the balanced scorecard is introduced to present the value of intangible assets in a more visual method by drawing a strategy map to shareholders and customers. (Kaplan and Norton,…