Balanced Scorecard Definition
Balanced Scorecard Definition
by D5655 Hariyatno
According to Kaplan and Norton (in Novirani, et al, 2013: 268) defines balanced scorecard as method that translates the vision, mission, and strategy into a comprehensive set of measures that provide the framework for measurement and strategic management. Rigby (2015: 11) defines balanced scorecard is defines an organization`s performance and measures whether management is achieving desired results. The balanced scorecard translates Mission and Vision statements into a comprehensive set of objectives and performance measures that can quantified and appraised. Widilestariningtyas, Anggadini and Firdaus (2012: 175) defines the balanced scorecard as a tool for management to provide a regular assessment for senior executives on how well their organization is progressing, linked to the achievement of strategic objectives. According to Hansen and Mowen (2006) defines Balanced Scorecard is strategic management system that defines the accounting systems of accountability based on strategy. Another opinion expressed by Atkinson, Anthony, Kaplan, Robert, Matsumura, Mae, Ella, Young, Mark (2012: 105) that the Balanced Scorecard is a measurement of organizational performance based on four different perspectives but related derived from the vision, strategy and tusjuan organization. It translates vision and strategy into a comprehensive set of rules and provide a framework for the measurement and management system strategy.
| Financial | : How the stakeholders measure the success of the |
company? | ||
| Customer | : How we create value for customer? |
| Process | : On which process we should improve to satisfy the |
stakeholders and customers. | ||
| Growth | : Whether the ability of employees, information |
systems and organizational skills needed in order to continue to improve processes and customer relations. According Sumarsan (2011) Balanced Scorecard is a strategic planning and management system widely used both within the organization profit-oriented as well as in non-profit organizations around the world in business activities to align the vision and strategy of the organization, improve internal and external communication and oversee the performance of the organization in accordance with the company’s strategic objectives.
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