Transforming the balanced scorecard - Coursework Example

Transforming the Balanced Scorecard The Balanced Scorecard is a performance measure that utilizes financial measures and supplements it with measures on the drivers, lead indicators, and financial forecasts. There has been an increased adoption of the Balanced Scorecard approach to manufacturing and service companies since its introduction in 1992. The popularity is due to its emphasis on the linkage of measurement to strategy and cause and effect linkages that outline the hypotheses of the strategy.

It also shows the changing nature of technology and competitive advantage. Modern organization view intangible assets as a source of competitive advantage as opposed to the view of the 19th century and early 20th-century firms (Kaplan and Norton 88).The Balanced Scorecard was introduced to provide a new framework for describing value-creating strategies that link tangible and intangible assets. It describes how to mobilize and combine intangible and tangible assets to develop differentiating customer-value offering and superior financial results.

The program has helped over 200 executive teams. It allows the strategy to emerge from meetings and consultations with the senior executives. Then a general framework for describing and implementing the strategy known as the strategy map is developed. It creates a common and comprehensible point of reference for the company (Kaplan and Norton 92).Apart from its industrial application, Balanced Scorecard has also been adopted by non-profit and government organizations (NPGOs), however, it faces the challenge of a strategy that has not been clearly defined.

It is important for the class to note that the Balance Scorecard is not just about performance measurement. It has evolved to become the organizing framework, for a new strategic management system. Its adoption has been observed to deliver good result. The Balanced Scorecard provides a recipe to combine with what exists in the organization for long-term value creation. The following points will be in class; strategic maps, other forms of performance measurement, Balanced Scorecard and NPGOs and beyond performance management (Kaplan and Norton 102).

Work CitedKaplan, S. Robert, and Norton, P. David. Transforming the Balance Scorecard from performance Measurement to Strategic Management: Part I, 2001. Print