management process of balanced score cardthe bsc

Question

Management Process of Balanced Score Card

The BSC (Balanced Score Card) proposes four a new management processes which separately and in combination, contributes to linking long-term strategic objectives along with short-term actions. The processes are:

(i) Translating the Vision

1. Clarifying the vision
2. Gaining consensus

(ii) Communicating and Linking

1. Communicating and Educating
2. Setting goals
3. Linking rewards to performance measures

(iii) Business Planning

1. Setting targets
2. Aligning strategic initiatives
3. Allocating resources
4. Establishing milestones

(iv) Feedback and Learning

1. Articulating the shared vision
2. Supplying strategic feedback
3. Facilitating strategy review and learning

The balanced scorecard could be used as the foundation of an integrated and interactive strategic management system. Kaplan and Norton (1992) have declared that various organizations are using the BSC to:

1.  Clarify and update strategy

2. Communicate strategy throughout the company

3. Align unit and individual targets with the strategy

4. Link strategic objectives to long-term targets and annual budgets

5. Identify and align strategic initiatives

6. Conduct periodic performance reviews to learn about and improve strategy.