Balanced Scorecard: Macroscopic Organization's eyelook

Kaplan and Norton describe the innovation of the balanced scorecard as follows:

The balanced scorecard retains traditional financial measures. But financial measures tell the story of past events, an adequate story for industrial age companies for which investments in long-term capabilities and customer relationships were not critical for success. These financial measures are inadequate, however, for guiding and evaluating the journey that information age companies must make to create future value through investment in customers, suppliers, employees, processes, technology, and innovation.”

The general model of subjected theory encompasses following four major suits.


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Let us have a look how organization can develop metrics, collect and analyze it in the light of these 4 apples

  • Starting with the “Organizational capacity” content, organizations must devise a method of continuous learning for its employees, utilizing which they can be efficient in a problem-solving tasks. With an ongoing technological change, training and education module is becoming a new paradigm for global sector. Industries must formulate a subjected plan as per company’s vision and mission strategy. Kaplan and Norton emphasize that ‘learning’ is more than ‘training’ containing tools, which Baldrige criteria call “high performance work systems.”
  • “Internal processes” content can be summarized as “What you can’t measure, you can’t improve”. Metrics are the basic ingredients for any process against which its continuous evaluation can be ensured in the light of organizational objectives. It basically addresses the “How customer can be more delighted” dilemma?
  • “Financial-content” refers to the inclusion of additional financial aspects in existing database such as risk assessment, cost-benefit analysis, vetting of balance sheets etc. Financial as pacts basically addresses the question “How a company is seen by the Stakeholders”?
  • The “Customer” perspective holds the quote “If customers are not satisfied, they will eventually find other suppliers that will meet their needs”. Thus, in developing metrics for satisfaction, customers should be analyzed in terms of kinds of customers and the kinds of processes for which we are providing a product or service to those customer group.



Balanced Scorecard entails the  macroscopic view of industry’s relevant driving fundamentals. The philosophy must be adopted ASAP keeping in view the technological disruptions

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