Balanced Score Card

Introduction

Balanced Scorecard (BSC) is an important development in strategic performance measurement systems. Balanced scorecard recommend two views, financial and non- financial procedures that can be showed the relationship between the effect and the cause (Kaplan, 1996). Due to its anecdotal cases of success, BSC has attracted interest worldwide. Prior research studies have examined the application rate, the determinants and the impacts of BSC implementation relying solely on the firms’ self-assessed responses with regard to BSC application. Surprisingly, some determinant studies revealed that the vital determinant (i.e., top management support) is inversely associated with BSC implementation; in other words, top management support impedes the implementation of BSC. This phenomenon has cast doubt on the reliability of self-assessed responses. The fourth views offer the basis for the BSC (see Figure 1-1). (Kaplan & Norton, 1996)

The BSC spread the business unit goal further to the point of the financial perspective. Then executives could measure how their whole businesses conceive value for present and future customers, and also how to improve future performance by appreciate investment in people and all procedures (Kaplan, 2013).

The Balanced Scorecard captures all the skills, stimulate administrative members. While maintaining, via the financial view, an attraction in temporary performance, it is clear that the Balanced Scorecard admit the cost drivers for greater continuing competitive and financial achievement(Kaplan, 2013).

Key literature and theoretical background of the topic of investigation:

In determination of the stages of BSC (i.e. either non-implementation or implementation) among the target firms, the majority of existing research studies has solely relied on the self-assessed responses. A handful of research works have taken into account the characteristics of firm-level performance measurement systems in identification of...