Performance Management Systems and Strategies

BENEFITS OF THE BALANCED SCORECARD

Some of the benefits of the balanced scorecard can be listed as under:

• It aligns key performance indicators with the overall strategy of the organization, and in the process facilitates effective measurement of realized strategy vis-à-vis the performance goals of the organization.
• Balanced scorecard makes available the holistic picture of business results; therefore, it can also be used as organizational health index.
• It enforces a positive work culture in the organization, as in the process of its development all cross-sections of employees need to get involved, communicate with each other, understand the business imperatives and the strategies of the organization, irrespective of the nature of their activities ...