The Balanced Scorecard Approach, Essay Example

How can the Balanced Scorecard approach improve organizational effectiveness and decision making?

The Balanced Scorecard approach helps improve organizational effectiveness and decision making because it helps improve upon strategic planning and management systems in a manner that allows for the overall enhancement of a company. Ultimately, it helps organizations determine the steps that are needed to ensure that they will be able to meet their goals. It functions as a performance measurement that enables the ability for institutions to determine how close they are to achieving these aims. This process helps decision making because it provides leaders of the organization with the data that they need in order to make well-founded choices.

The Balanced Scorecard focuses on the analysis of current management methods in a manner that allows these attempts to be built upon to support the organization (Balanced Scorecard Institute, n.d.). It provides a framework that helps determine success and failures in terms of both long-term and short-term goals. Therefore, the management team is aware of the precise factors that need to be changed in order to enhance organizational behavior.

There are several perspectives that must be considered as a part of this process. Namely, it is essential to consider how current practices impact both the employees and the customer. It is necessary to enhance practice in a manner that benefits the customer and contributes to employee efficacy. The balanced scorecard can be used to ensure that this process will be successful by conducting an analysis of employee practices and determining how they can be optimized. Ultimately, optimizing employee behavior will contribute to the success of the organization. Therefore, it is important to consider this to optimize business practices overall.

References

Balanced Scorecard Institute. (n.d.). Balanced Scorecard Basics. Retrieved from http://balancedscorecard.org/Resources/About-the-Balanced-Scorecard