Balance scorecard advantages Essay Example for Free

Balance scorecard advantages Essay 1. More comprehensive measurement The explanation of a more comprehensive measurement is a measurement of company’s performance as one whole body with each of the 4 perspectives. The company will not consider just one perspective as the standard of the company succeed, but it will consider the causal or reciprocal relationship between all of those 4 perspectives. 2. A balanced work The measurement reached by making a balance scorecard which includes all of those 4 perspectives in the company whether in a short-time period or long-time period creates an ability to see the balanced view of the company to make a strong strategy. The well-made balanced strategy itself will bring a good and balanced performance both for the company as an organization also for those 4 perspectives in the company. 3. Creates a real measurement A balance scorecard allows the company to translate the strategy into specific measurement so the company know what it has been done, what it should do, and how the company can do the things specifically in order to achieve the target in the measurement. The measurement could also be used in the learning-process of the company’s life. 4. Increase efficiency The balance scorecard method facilitates communication and understanding about the business goals in each level of perspectives so those perspectives can examine what part of their strategy must be reduced in order to increase efficiency. It also can help the company to align the key performance measured to the business strategies in each level of perspectives. It also reduced the vast amount of information that the company IT systems process into essentials. 5. Improve decisions and better solutions Through the openness of communication, people are more freely to express and share their creative and unique ideas. Beside that, the communication makes a transparency among the entire organizations. With a mix of creative ideas and better transparency will bring a company to achieve an improvement in the decisions making process. People can analyze and select the best method of how to achieve the business target through the entire organization.