Balanced Scorecard An Approach for Application in Public Sector Organisation

With a view to measuring a firm’s activities in terms of its vision and strategies and to give the manager’s a comprehensive view of the performance of a business, a concept which is described as Balanced Scorecard was introduced by Robert S. Kaplan and David Norton in the year 1992. There have been several studies conducted on the subject of Balanced Scorecard to develop the concept adaptable to the changing circumstances and needs of the organizations.
"The Balanced Scorecard method of Kaplan and Norton is a strategic approach and performance management system that enables the organ…
The four perspectives are:
1. Financial perspective encompassing the implementation of a corporate database for processing the information in a centralized and automated way.
2. Customer perspective focusing on customer needs and customer satisfaction
3. Business process perspective by designing metrics to show the performance of the organization with strategic management processes, mission-oriented processes, and support processes
4. Learning and growth perspective including employee training and corporate cultural attitudes related to both individual and corporate self-improvement. (Kaplan &amp. Norton 1996)
For each of the perspectives of the Balanced Scorecard, four things are required to be monitored and respective scores studied.
Objectives: The overall objectives of the organization need to be studied and properly scored. The objectives may relate to profitability, marketing or capacity utilization, etc.
Measures: Once the objectives are established the next logical step is to identify the proper tools and parameters and define them to measure the organization’s performance towards achieving these objectives. For example, the growth in the net margin or the sales in a particular region may well act as the measurement parameters.
Targets: When the measurement parameters are established suitable targets need to be evolved to transform the organizational objectives into reality.