Implementing Balance Scorecard for Performance Measurement

The balanced scorecard is a strategic planning and management system that is used extensively in business and industry, government and nonprofit organizations worldwide to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals. A major consideration in performance improvement involves the creation and use of performance measures or indicators. Through the analysis of data from the tracking processes, these measures or indicators themselves may be evaluated and changed to better support such goals. The success of the balanced scorecard or a similar device will depend on the clear identification of non-financial and financial variables and their accurate and objective measurement and linking the performance to rewards and penalties. The proponents of the balanced scorecard claim that it aligns with strategy leading to better communication and motivation which causes better performance.