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The Balanced Score Card

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Overview: Historically, businesses use to measure their performance by traditional financial reporting which focus mainly on financial result (QuickMBA, 2010).

Those results provide information about past performance (considered as obsolete) and are incapable to offer information about future performance. Using this traditional method did not give entities a complete and accurate picture of the business to help manager to manage future performance. Robert Norton & David Kaplan have seen the increasing attention to the importance of strategic measurement system that include both financial and non-financial measures (Kaplan, 2010, p.2). To answer the call, those professors have introduce in 1992 the balanced scorecard which is a multi-dimensional measurement system considering more than one source of information and including both financial and non-financial information.

The balanced scorecard is a strategic planning and management system that is used extensively in business and industry, government, and non-profit organisations 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 (Balanced Scorecard Institute, 2013).
The balance scorecard is a tool that aims to translate the mission, objectives and strategies of an organisation into performance measure. It allows firms to implement strategy and to monitor and manage performance within the organisation focused basically around four different perspectives. From results obtained, managers are able to undertake corrective action on area they should operate further.

History:
The balanced scorecard has been first introduced in a Harvard Business Review article in 1992 by the professors Robert Kaplan & David Norton and then developed by themselves at Harvard Business

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