Balance scorecard should be used to assess the performance measurement. It is being considered as the strategic tool for performance measurement. The various methods are designed and automated tools are used by the managers in order to keep the track of activities taken up by the executives and thus various actions are taken up by the managers in order to monitor the consequences. The balance scorecard provides various information on the vision and mission of the company. Thus the vision and mission of the company will be considered for the preparation of the balance scorecard. It helps in providing the links between human and physical resources, the outcomes and the focus on the strategic priorities of the organization. For designing the balance scorecard, various financial and non-financial measures are identified and various targets are attached to the various measures and the performance is measured so as to know that whether the performance is in accordance with the set expectations. The main idea behind designing the expectations is that mangers are given information in regard to the various deviations that are there in the various areas and they are encouraged to improve their performance. Balance scorecard helps in creating a relationship between conventional strategic planning and the various control activities.
The various perspectives of the organization are being considered while designing the balance scorecard:
1. Financial perspective
2. Customer perspective
3. Internal business process perspective
4. Learning and growth
The balance score card of the current period provides information in regard to both the past and future events. The diagram provides the information in regard to designing the innovated balance scorecard.
Thus, the balance scorecard dictated management software. But it need to be developed and implemented in strategic manner and thus need to work as a performance measurement tool. Thus the senior managers need to give their advices in relation to designing and implementing the scorecard. The scorecard need to reviewed in respect of the organizational goals, and thus providing for the strategic actions which need to be achieved in order to achieve the objectives of the organization.
Hence, the Balance Scorecard can help the Schmall and his team to move from performance measurement to performance management.