BALANCED SCORECARD : A STRATEGIC MANAGEMENT TOOL

Abstract

The success of any organization is reflected upon by its performance which is in turn highly dependent upon its strategies. In this era of cut-throat competition, what an organisation requires is not just framing the right strategies, but also managing the same. The impact of the right strategies will automatically be reflected in the results. Moreover, any organisation has to understand that it needs to give impetus not only towards the financial results but also towards satisfaction of the customers, development of state-of-the-art technologies and creation of an environment of learning and growth. The Balanced Scorecard is such an innovative tool which has considered not just the financial indices but also the non-financial indicators as equally critical in determining organizational performance. This tool brings a link between strategy and action. Due to these, the framework is gaining increasing importance among different business houses.