2012 13048

Luis Emilio Garcia Laj

Technical Language 4
December 16, 2015

Applications of Balanced Scorecard

In these days, there are plenty of tools to develop management. Some of them
have changed but their objective is still the same: not to be left behind in this
changing and competitive world. The balance scorecard is one of these tools, and
is used to connect business activities with the vision and strategy of the
organization, as well as to improve internal and external communication and
monitor organizational performance against strategic goals.
The origin of the balance scorecard arose as the need to measure success on
more than just financial statements. Giving special attention to financial results will
not let an organization to prosper in this globalized world. Financial results are a
parameter of past performance, but wont let the organization to know its current
status or where it will be in the next years. In addition, the balanced scorecard
offers a framework and language that enables to describe the strategy in an easier
way. Also, a balanced scorecard allows to measure the factors that create value for
an organization in order to determine its ability to prosper.
The scorecard application provides the tools needed to interpret the
organizations strategy, communicate it to all members within the company,
measure progress towards achieving defined goals and determine possible
deviations.