The Balance Scorecard evaluates organisational performance from various perspectives. .

This is so because managers who used to focus their attention primarily on measuring and controlling financial performance. .Robert Kaplan and David Norton developed the balanced scorecard in the early 1990s as a performance measurement system. are increasingly recognizing the need to evaluate other aspects of organizational performance to assess the value-creating activities.

It is a comprehensive performance measurement system that balances traditional financial measures with operational measures.Now The Balanced scorecard provides a fresh approach. . The Balanced Scorecard is a framework that firm can use to verify that they have established both financial and strategic controls to assess their performance.

. 4. To communicate throughout the Company. To identify and Align Strategic Initiatives. 2. 5. To Align Units and Individual Goals. To Conduct Periodic Performance Reviews. 3. To Clarify and Update Strategy.1.


Number of new products compared to competitors 3. Increases in employees’ skills Customer Internal Business Processes Learning and Growth . Improvements in innovation ability 2. Assest utilization improvements 2.STRATEGIC CONTROLS AND FINANCIAL CONTROLS IN A BALANCED SCORECARD FRAMEWORK PERSPECTIVES Financial CRITERIA 1. Return on assets 1. 1. Percentage of repeat business 4. Return on Equity 3. Effectiveness of customer service practices 3. Changes in turnover rates 1. Cash Flow 2. Assessment of ability to anticipate customers’ needs 2. Quality of communication with customers. Improvements in employee morale 3.

Defining objectives and levels at the corporate level 2. Linking the line of business and measures to critical business processes. .1. Linking corporate objectives to individual lines of business and measures 3.

3.1. Does not Provide Recommendations. 2. 5. Takes Time. . Can Show Low Profit. Resistance from Employees. 4. 6. Not Fully Efficient. High Implementation Costs.

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