Balance scorecard developed by Kaplan and Norton is most useful for the companies to enhance their financial status in competitive world. It measures the performances from three perspectives like customers, internal business processes, and learning and growth. Balance scorecard enables companies to track financial results with monitoring the progress in building the capabilities to acquiring intangible assets needed for future growth.
Balance scorecard enables manager to see the financial performances on long term and linking long term strategic objectives with short term actions. The four management processes like translating the vision, communicating and linking, business planning, and feedback and learning are useful contents of balance scorecard for management.
The personal scorecard helps to communicate corporate and unit objectives to the people and team performing the works. Finally, the balance scorecard enables a company to align its management process and focuses to implement the long term strategic goals of company.
National Insurance when developed its first balance scorecard that allows CEO and managers to introduce new strategy for the organizations and also examine the management system of company. It took 30 months for National Insurance to build strategic management systems but it became an established part of organization.
Company should use the balance scorecard to clarify and update strategy in every cycle meeting. Manager should communicate with each employee and develop the small carry scorecard for their future growth and company’s growth.
Company’s CEO or managers should communicate strategy throughout the company and also align units and individual goals with the strategy to achieve financial goals of a company. In my last experience I have experienced that my company achieved their five years financial goals with systematic implication of strategy by using balance scorecard.
Without balance scorecard most organizations are enable to achieve visions and actions they desired. Balance scorecard provides them direction and framework to work accordingly their visions and actions requires achieving it.
For healthcare organizations and pharmaceutical I would like to suggest that balance scorecard provides a useful framework for designing, implementing and monitoring the strategic pursuits for them. They need to construct the balance scorecard diagram and identify the vision of company with strategy that allows the vision to turn in to reality. Healthcare managers also need to identify goals and objectives for each perspective like financial, customers, internal business process, and learning and growth by listing items in the respective position on the balance scorecard.