If a team member is given a target and told that she will be rewarded if she is able to meet it, she will try her level best to attain that target. While this approach is easy to measure financial results, measuring satisfaction level of employees becomes difficult. Companies become over dependent on finance and employees leave all other activities to achieve the set goals that are supposed to reward them. It can thus, be said that while companies are more interested to meet financial results, smaller activities are neglected. In this article, we will discuss about the "Balanced Business Scorecard," which is used as one of the strategy tools to improve the performance of a small team, a department or even an organization. It is used as a tool for implementing strategy so that the performance of team member can be measured and improved in an integrated manner.
History of Balanced Scorecard
The Balanced Scorecard was developed in the beginning of the 1990s by Robert Kaplan and David Norton. The two identified that several companies managed their businesses through financial measures. Even though this process may have worked in the past, but in today’s business scenario, more comprehensive measures need to be adopted. Financial measures can only tell where a business have been in the past, they cannot be reliable indicators of the future of the company.