Critically evaluate and discuss Balanced Scorecard Essay

Critically evaluate and discuss Balanced Scorecard - Essay Examplecustomer issues, internal business processes, employing activities and share holders concern. Kaplan and Norton tagged the new tool the balanced scorecard.Many organizations have started using balanced scorecard in holy order to attain efficiency in their processes. Since it considers all the major(ip) components in an organization a total efficiency management is possible in an organization. The four components of balanced scorecard are properly managed in order to create a total efficiency.Balanced scorecard is a strategic planning and management system, which is extensively, used in business and industry, government, and non profit organizations for doing the business activities to the great deal and schema of the organization. Balanced scorecard is using for improving the internal and external communications and monitoring the organizational performance against the strategic goals of the organization.In earlier be it was used for the measuring the simple performance of the organization to a full strategic planning and management. New card is focusing not only the performance measurement but as well helping the managers what should be done and what should be measuring for attaining the organizational objectives in competitive basis. ... overall business strategy into specific, quantitative goals and to monitor the organizations performance in terms of achieving these goals. (Balanced Scorecard Methodology, 2005). Competitive Advantage enables the company to operate in a more efficient manner and high quality manner than the companies to compete with and which helping the company for getting higher more profit.A competitive advantage is an advantage over competitors gained by fling consumers greater value, either by means of lower prices or by providing greater benefits and service that justifies higher prices. (Strategy -competitive advantage). Balance score card is focusing the strate gy and its results and improving the organizational performance through measuring the measures in a competitive basis, Focusing on a basis of future performance and also which is used as prioritize projects and initiative basis. Kaplan and Norton described in the following manner,The balanced scorecard retains traditional financial measures. But financial measures tell the myth of past events, an adequate story for industrial age companies for which investments in long-term capabilities and customer relationships were not critical for success. These financial measures are inadequate, however, for guiding and evaluating the journey that randomness age companies must make to create future value through investment in customers, suppliers, employees, processes, technology, and innovation. (Gnanapoo, 2008). According to his perspective Balanced scorecard having the following areas, study and growth perspectiveCustomer PerspectiveFinancial PerspectiveInternational Business perspective(W hat is balanced scorecard 2007).The learning and growth perspective is associate to the learning and development