Balance Scorecard Case Study

Robert Kaplan and David Norton developed the balanced scorecard concept in the 1990s. There was a need to measure non-tangible information. Non-tangible information can be correlated to the office environment. The processes in the office were more difficult to monitor the overall impact of the company (Jones, 2012). It was easy to monitor the performance of blue collar workers, because they produce tangible products. With tangible products comes financial data. There are a number of ways a company can measure their success. The most popular ways are net profits and ratios, based on various financial aspects of the business, such as return on equity, current ratio, or quick ratio (Financial Ratios, n.d.). These ratios are obtained from

This could be new skills for employees to learn to improve business processes. Another example would be learning new software that may make implementing business processes easier (Savkin, 2015).
Business processes perspective is an opportunity for the company to set goals to improve areas of their business which may be not as strong as other areas, such as increasing efficiency on the manufacturing line. It could also be setting goals to launch new products or services quicker than when planned. As stated above, the business processes could progress from the learning and growth perspective (Savkin,

When an objective is set in one, it may have a value that carries on to help another perspective meet their objectives. Essentially, the goals in the non-tangible perspectives (customer, internal process, and business processes), they affect the financial perspective. The three non-tangible perspectives of the balanced scorecard allow the company to really focus their efforts on improving these areas and involve everyone in the company. In most companies, strategic planning is done once a year and off site with the senior leadership team. In most cases, what happens during that process does not get relayed to anyone else in the company. A balanced scorecard will be created to communicate to everyone in the company what the focus is in the upcoming year(s) and how they can contribute to meeting those goals. It is an ongoing process, because the environment is always changing and companies need to adjust quickly when this happens. A balanced scorecard will help a company determine when they need to make changes to their objectives in order to stay ahead or with their competition (Jackson, 2015). A balanced scorecard can be beneficial for a company. It is a process that can strengthen their mission. It will also be an opportunity to focus on their strategy for both the short term and long term. By determining the strategic planning, then goals can be put into place to achieve that planning. In order