Top level executives or top management team while attending to various management tools for delivering business success can’t afford to miss the most contemporary applied strategy, the balanced scorecard.
Balanced Scorecard at core level is a premeditated planning and management system which has been implemented in various Private sector businesses, Industrial manufacturing groups and government organizations in order to make the business activities in congruence with business objectives or vision, to stream line the interdepartmental communication and to augment the business output and above all it works as performance measurement technique.
In order to implement balanced scorecard tool there has to be four standpoints: Customer, Financial, Human Recourse and Business process. Once the individual perspective has been determined, data should be collected and scrutinized it relative to each of these perspectives.
The Customer Perspective: Here the main focus should be customer satisfaction in terms of product quality, logistic and post sales service. No business should take this factor for granted since may be present financial year performance seems satisfactory but as soon as due to service quality decline customer may turn up to another supplier ruining the future gain. Hence this should be considered the most important perspective and relate with other perspective to influence best outcome.
The Financial Perspective: This is another crucial perspective, here top management can generate the reports in two parts: One the incoming finances; sales and payment from customers and out going finances: cost of production and administration expenditure. Both way financial flows has to be monitored and if there seem to be any imbalance, corrective action has to be implemented. For instance if sales going down there is need to shift focus on customer and if cost is raising, cost cutting strategies should be implemented.