Applying Balanced Scorecard - Assignment Example

A Balanced Score Card Developed by two Americans Robert s. Kaplan and David P. Norton, a balanced scorecard is used to execute strategies in a business environment. It is meant to transform a plan into an achievement. According to Blokdijk (2008, p 109) the scorecard was implemented because the mode that was used to measure performance in businesses was not so good. Business managers mainly looked at the financial performances instead of looking on the customer relations, internal business process, learning, and growth of employees, which in turn bring about stable financial situation.

Businesses were faced by unclear situations of distinguishing an important aspect from what is not. Kaplan and Norton stated that the important aspects of a business should be presented in a balanced way. A balanced scorecard has three basic components that are important. They include strategic management framework, measurement system and communication tools (Blokdijk, 2008). The banking industry, greatly benefits from the balanced scorecard and management system. The BSC system helps managers in the banking sector accomplish the institution’s objectives.

The major scorecard perspectives that can be implemented by managers are better-quality customer service and efficiency in the internal business processes (Blokdijk, 2008 p 113).Banks strategies are always based on the customer and therefore with improved customer service, the bank will end up improving on its profits, sales and turnovers. Banking industries are also able to improve by ensuring that they have efficient business processes. Blokdijk (114) states that with efficiency in the internal business processes, a banking industry will be able to retain its customers.

With retained customers, the financial returns go up and the thus improvement in the industry.ReferenceBlokdijk, G. (2008). Balanced scorecard 100 success secrets. S.l. Gerard Blokdijk.