Balanced Scorecard Essay

The balance scorecard is used as a strategic planning and a management technique. It is widely used in many organizations, regardless of their scale, to align the organizations performance to its imaging and objectives. The scorecard is also used as a tool which improves the converse and feedback process between the employees and management, and to monitor performance of the organizational objectives. There be four diametrical locations of balance scorecard which ar financial performance, client knowledge, internal business processes, and learning and growth.Each perspective represents a different aspect of the business organization in order to operate at optimal capacity. Financial perspective is nearly how does the firm look to shareholders. This is have-to doe with with the shareholders view of performance. Shareholders are concerned with many aspects of financial performance. Amongst the measures of success are market share, revenue growth, profit ratio, return on invest ment, economic treasure added, return on capital employed and profitability. Customer perspective is to the highest degree how do customers see the firm.This perspective focuses on the analysis of different types of customers, their stop of satisfaction and the processes used to deliver products and services to customers. Particular areas of focus would imply customer service, customer retention and customer satisfaction. Internal perspective is about how well it manages its operational processes. This seeks to identify how well the business is performing, whether the products and services offered light upon customer expectations, and the critical processes for satisfying both customers and shareholders.Learning and growth perspective is about can the firm continue to improve and effect look on? This perspective also examines how an organisation learns and grows. This perspective is concerned with issues such as can we continue to improve and create value? In which areas mus t(prenominal) the organisation improve? How can the company continue to improve and create value in the future? What should it be doing to make this happen? The concerns of equilibrize scorecard are long term with short term concerns, financial with non-financial concerns, and internal with external concerns.