Summary of a Balancing Act

The balance scorecard is a measurement system. Its most important function is to support the promotion of strategy at an everyday operation level. The balance scorecard system is part of a strategic and operation-planning objective setting and monitoring as well as learning about how well the strategy works. This system can be used n any organization to help align vision and mission with the customer requirements.

The balance scorecard system was original developed in the early 1990s. And today this system has become a full performance management system that is used not only in the private sector, but also in the public sector. The different views and perspective of business owners, customers, stakeholders, mangers, and employees are all part of the balance score card language.

Building a balance scorecard takes six steps. The first step is building the scorecard. The scorecard is an assessment of the organization foundations, its core beliefs, their market opportunities, competition, and their short and long-term goals. The second step is the development of the overall business strategy. The third step is a decomposition of the business strategy into smaller components call objectives. The objectives are the basic building blocks of the strategy. The fourth step is to create a strategic map of the organizations overall