Norton and Robert S. Kaplan (Punniyamoorthy & Murali, 2008). Balance Scorecard helps in implementing the organizational strategies in terms of actionable plan and make it a thorough continual process by providing a comprehensive road map of how to effectively carry out strategy, including the alignment and mobilization of the management team and other employees (Punniyamoorthy & Murali, 2008).
According to Harvard Business Review, the Balance Scorecard is one of the most influential management ideas of the past 75 years (Palladium, n.d.). Today, many large, medium-sized and even small organizations use the Balance Scorecard as a performance measurement system, but usually small and medium-size companies fail to successfully implement that. This happens generally due to the gap between their strategies and vision.
This paper is based on the concept of Balance Scorecard. The essay starts with the introduction, followed by a thorough understanding of the Balance Scorecard, with the significant reviews of the applicable literature, including factors that obstructs the successful execution of a Balance Scorecard.
The Balance Scorecard is a tool that helps the organizations to create a link between its strategy and actions, encourages the individuals to involve in organizational planning, focuses on the critical phases of the business and take action instantly when change is required (Atkinson, 2006). It is a multidimensional tool that can be used in management, strategic and measurement systems. With its multidimensional tactics, the Balanced Scorecard integrates the performance measurement of both financial and management aspects (Punniyamoorthy & Murali, 2008). It measures the performance by focusing on four major perspectives, which includes financial stability, customer base, business operations, and learning and development. This tool gives the meaningful interpretations of the interconnections between the business processes