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The Balanced Scorecard – Measures That Drives Performance


            In this article, the authors are discussing the importance of balanced scorecards in a business process so that every vital factor of a company’s strategy can be tracked like its improvement, team work, partnership, performance, and global scale. The companies used to utilize traditional performance measures in past, but in today’s advance business world, those traditional measurements are not enough. Companies have to look for more measurement tools and factors to ensure their competencies in the market. A good measurement system of an organization helps them to influence the behavior of their managers and employees. There are two measurement standards used in business setting. One is operational measurement and the other is financial measurement. Now the question is that which measurement tool should be used. The authors believe that using one and excluding the other is not a good strategy. With one measurement toll, a company cannot clearly measure its performance. So, this article makes a view point that both concepts should be used with a balance. The authors during a one year research study used a balance scorecard for measuring 12 companies performance.

            The authors have described in detail that what balanced scorecard they used in the research project. They describe that a balanced scorecard is consisted of both operational and financial measures. Financial measures used in this scorecard helps to measure the results taken from the already performed actions and operational measures include those measures which actually drive the financial performance measurement. To understand the process of balanced scorecard, authors have given a good example of cockpit dials used in an airplane. During a flight, pilots need a lot of important information to take decisions accordingly, so dials in the cockpit helps them to keep an eye on every important aspect. Same goes for the business measurement process. A company has to keep an eye on each aspect of the measurement to ensure better performance. Customer’s measures are very important in measurement process. A chemical company’s example is also included in the article which used the financial report to improve quality. In the end, after analyzing all the aspects, the authors have recommended some measures for the companies to follow to achieve a balanced scorecard; a balanced scorecard and measures, which drive the company’s performance in positive way.

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