Balanced Scorecard BSC - Definition.
What is the balanced scorecard? - One of the main function of executives and managers of companies consist of defining an strategy to obtain the raised objectives. Many books and manuals about the strategic plan of a company have been written. The aim of this article is not talking about this, but I suppose that as time goes by, I will have to write about the different tools and techniques of the development of the strategic plan.
Nowadays, people belonging to the business world talk a lot about the Balanced Scorecard (BSC), it seems that the consultants offer "a magical "methodology which will solve the problem of the attainment of the objectives of the company. Many people speak about the advantages of the BSC and also the versatile that it offers to the business, from the big multinational of manufacture to the singular business.
But, what is Balnced Scorecard BSC? What it is used for? Is it a methodology that will solve the problem of my company?
Definition of the Balanced Scorecard (BSC)
The Balanced scorecard is a management tool that allows to monitor the indicators, the fulfilment of the strategy developed by the direction, at the same time it helps you to take fast decisions and guess the right to reach objectives.
If we want an academic definition, it has to be mentioned the normative " UNE 66174 OF NOVEMBER 2003 " in the section 3.8 . It provides the following definition:
"Balanced Scorecard is a tool of management which facilitates making decisions and gathers a coherent set of indicators which provide high directives and the responsible functions. It is also a comprehensive vision of the business and its area of responsibility. The information contributed by the BSC allows to focus on the directive equipment, on the units of business, on the resources and the processes with the strategies and organization "
The management indicators are usually represented by speedometer graphics.
It is no in the definition where the main errors are found but in the planning of this strategy and in its deficient execution . The BSC is nothing new, it just indicate an organized way to carry out our tasks.
As it is said in the previous paragraph the BSC is not a new tool, it has been previously developed in Europe and specially in France , where it called "tableau of Bord ". The fathers of this tool were a teacher from Harvard University , Robert Kaplan, and David P. Norton. They published the famous book "the balanced scorecard ".
Kaplan and Norton. Fathers of Balanced Scorecard
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Excel scorecard - Balanced scorecard in Excel
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Next Chapter: The assets of the company and the Balanced Scorecard.