Balanced Scorecard in the Chinese Commercial Banking Sector - Dissertation Example

Download file to see previous pages While the saying ‘balanced scorecard was coined in the early 1990s’, the origin of this approach however is believed to be deep, and also embraces the radical work of General Electric (GE) during the early 1950s. The work was basically based on reporting performance measurement. Apart from this French process engineers have also contributed immensely to the development of performance management tools. Their work was during the early 20th century. In this context, the engineers literally developed a “dashboard” in order to monitor performance levels in a simplified and efficient way. Despite its early conception, it was originally developed at Harvard business school by Dr. David Norton and Dr. Robert Kaplan in the year 1992.

During the initial phases after the development of the balanced scorecard, it was merely used as the performance measurement tool or a performance measurement agenda. Nevertheless slowly with the passage of time balanced scorecard has been able to gain much more importance in the professional field. A number of companies incorporated balanced scorecards into their system of operation in order to facilitate effective and well-organized performance measurement systems. Nowadays balanced scorecard is considered a valuable strategic planning tool. It helps an organization to transform its strategic plan from an unreceptive document to a ‘mandatory task’ on a regular basis. A balanced scorecard not only offers a framework for performance measurement but also enables planners to discover what must be accomplished and measured. Furthermore, it also helps the executives to actually execute the proposed strategies.

The balanced scorecard has been able to achieve huge acceptance in a number of industries. It is being extensively used by different non-profit and government organizations around the world (Balanced Scorecard, n.d.). With the help of a balanced scorecard, organizations have been able to align their strategies and visions with business activities. It also facilitates effective communication by improving external as well as internal communication. Also, another important function of the balanced scorecard is to monitor the performance of the organization in accordance with the proposed objectives (Balanced Scorecard Institute, n.d.).

Some companies admit it is the best tool for the measurement of performance. According to the Annual Survey of Management Tools carried out by Bain and Company, the balanced scorecard is the tool that is being mostly used around the world and probably holds the 1st position in terms of its usage. From early 2000, mostly in parts like Asia, Middle East and Spanish-speaking countries usage of balanced scorecard along with their derivatives, and other similar tools have become common. ...Download file to see next pages Read More