BUS 443 Week 4 Discussion 2
Explain the importance of performance measurement in organizations. Explain what the balanced scorecard is. Describe its four components.
Performance measurement is something that happens nearly every organization. Performance measurement is essential for development organizational improvement. Effective performance measurement helps organization identify their strengths and weakness, top high performers, areas for improvement, and helps set the benchmarks with historical data.
A balanced scorecard is a strategy execution toll that helps organizations to clarify strategy, monitor progress, and define and manage action plans. The four components are financial perspective, customer perspective, internal process perspective, and learning and growth perspective. According to the article, financial perspective is outlining the financial objectives. Customer perspective is outlining the objectives related to customers and the market.