Research Methods - Dissertation Proposal (Balanced Scorecards - Why to Essay - 1

Research Methods - Dissertation Proposal (Balanced Scorecards - Why to go for it, how to develop and implement, how useful are they ) - Essay ExampleNorton in 1992, in an article that appeared in the Harvard Business Review titled The Balanced Scorecard Measures that drive performance. This management system was devised in response to the fact that eon most financial measures were able to track the past performance of a business, they were unable to effectively assess the intangible factors that contributed towards ensuring that the business retained a competitive advantage in the marketplace (Rutan 1996). The Balanced Scorecard is therefore a strategic measure of performance, not only from the financial point of view but from a more broad based perspective that also enables accurate projection of future goals and the degree of inclination of the business to those goals. The concept of performance measures was earlier developed by Peter Drucker as Management by Objectives (Birnb aum 200043-52). Employees in every department were to set turn up short-term objectives, which were to be achieved within a certain deadline. Companies such as General Motors and RCA Foods adopted this method of management, but it was found to be ineffective payable to the failure to take into account the unpredictable human factor in actual practice.There are two underlying principles that drive the Balanced Scorecard. The starting time one is that adhering to strictly financial measures hinders a companys ability to formulate long term value. The second principle is that what gets measured is what actually gets done. (www.tqe.com). Therefore, while the Balanced Scorecard retains traditional financial measures, it also includes such factors as customers, suppliers, technology, process, employees and innovation. Therefore, this strategy identifies four distinct areas that need to be analyzedKaplan and Norton advocate the trope of a comprehensive set of develop a scorecard, to e valuate the status of the business and what needs to be done to improve or enhance the scorecard to make it balanced in all the four fronts