Balanced Scorecard

Successful strategy execution has two basic rules: understand the management cycle that links strategy and operations, and know what tools to apply at each stage of the cycle (Kaplan and Norton, 2008).

Information about Balanced Scorecard

The Balanced Scorecard, developed by Kaplan and Norton (1992), functions as a communication tool, a planning and control tool, and a strategic learning tool. It is designed to reduce over-reliance on traditional financial accounting methods as a means of managing performance which are increasingly seen as being ineffective for the modern firm (Phadtare, 2010; Sundin, 2010; Tayler, 2010). The BSC perspective proposes that organisations incorporate non-financial performance indicators into their business models to improve overall effectiveness (Phadtare, 2010; Tayler, 2010).

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