The Importance of a Balanced Scorecard Financial Analysis - 0 views

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  #1 Handy Boyle on 02 Aug 12

   

  With the support of a balanced scorecard financial analysis on any business, the firm is guided through four viewpoints: financial sustainability, customer satisfaction, business processes streamlining, and learning and growth. These four are linked to each other in a way that the achievement of one perspective leads to the success of the other. It is essential for any to see where it is going and if the company's performance is still in line with its eyesight.
  
  The balanced scorecard financial analysis is a approach developed by Robert Kaplan and David Norton in 1992. It is basically an assessment that will help a company or business (whether profit or non-profit) improve and develop its strategies in the four perspectives mentioned earlier. The scorecard is composed of four categories that will concretize the steps in doing so. It narrows down what should be done in order to realize a certain goal. Through determining the objectives, measures, targets, and initiatives, the scorecard serves as a form of communicating of to all people of the company-from the manager to the employees. This means that each person in the company is given the chance to perform his task that will contribute to the success of the company. It makes everyone aware of his role and motivates him to perform his duties and responsibilities.
  
  Money is important in any business opportunity and every person engaged in business knows that money is the lifeline of a business. On the financial perspective, the balanced scorecard makes the company conscious of their financial status. The scorecard, again through the four areas, will measure the financial capabilities of the company. Their capabilities to spend, to gain capital, and to sustain their business with their existing funds make this perspective important. It is very important for a company to keep record of their financial details, and at the same time, create new approaches to earn profit. Since the balanced scorecard concerns technique, the financial perspective lets the company see if the budget they have at hand will allow them to execute a certain strategy.
  
  Applying the Balanced Scorecard management strategy is essential to a company. Why? Because it makes it more professional to look for marketing and business strategies in a holistic manner, meaning the four perspectives represent the elements that makes a business survive. The balance of money, people, open communication, and proper business tactics are what the scorecard aims to develop. It makes managing less stressful; and for the employees, it makes them feel more involved in the company they work for. To use this, however, one should keep in mind that it is important to stick to this method. The extended a company uses this, the better results it would get-from profit-making to better customer service and employee relations. Being organized and knowing what to prioritize are the keys that make a business succeed, no matter how big or small it is. The four perspectives only represent what makes the business a business. Even so, it is still up to those who handle it how to keep it going. Firms that adapt and execute the balanced scorecard financial analysis have the assurance of a smooth operation, good relations, and better business.
  
  If you are interested in balanced scorecard financial, check this web-site to learn more about KPI financial.
  
  Document Reference: KPI
  
  Write-up Source: KPI
  
  Document Resource: Balanced Scorecard
  
  Report Supplier: Balanced Scorecard
  
  
  

   

  <div class="cArrow"> </div><div class="cContentInner">With the support of a balanced scorecard financial analysis on any business, the firm is guided through four viewpoints: financial sustainability, customer satisfaction, business processes streamlining, and learning and growth. These four are linked to each other in a way that the achievement of one perspective leads to the success of the other. It is essential for any to see where it is going and if the company's performance is still in line with its eyesight.<br /><br />The balanced scorecard financial analysis is a approach developed by Robert Kaplan and David Norton in 1992. It is basically an assessment that will help a company or business (whether profit or non-profit) improve and develop its strategies in the four perspectives mentioned earlier. The scorecard is composed of four categories that will concretize the steps in doing so. It narrows down what should be done in order to realize a certain goal. Through determining the objectives, measures, targets, and initiatives, the scorecard serves as a form of communicating of to all people of the company-from the manager to the employees. This means that each person in the company is given the chance to perform his task that will contribute to the success of the company. It makes everyone aware of his role and motivates him to perform his duties and responsibilities.<br /><br />Money is important in any business opportunity and every person engaged in business knows that money is the lifeline of a business. On the financial perspective, the balanced scorecard makes the company conscious of their financial status. The scorecard, again through the four areas, will measure the financial capabilities of the company. Their capabilities to spend, to gain capital, and to sustain their business with their existing funds make this perspective important. It is very important for a company to keep record of their financial details, and at the same time, create new approaches to earn profit. Since the balanced scorecard concerns technique, the financial perspective lets the company see if the budget they have at hand will allow them to execute a certain strategy.<br /><br />Applying the Balanced Scorecard management strategy is essential to a company. Why? Because it makes it more professional to look for marketing and business strategies in a holistic manner, meaning the four perspectives represent the elements that makes a business survive. The balance of money, people, open communication, and proper business tactics are what the scorecard aims to develop. It makes managing less stressful; and for the employees, it makes them feel more involved in the company they work for. To use this, however, one should keep in mind that it is important to stick to this method. The extended a company uses this, the better results it would get-from profit-making to better customer service and employee relations. Being organized and knowing what to prioritize are the keys that make a business succeed, no matter how big or small it is. The four perspectives only represent what makes the business a business. Even so, it is still up to those who handle it how to keep it going. Firms that adapt and execute the balanced scorecard financial analysis have the assurance of a smooth operation, good relations, and better business.<br /><br />If you are interested in balanced scorecard financial, check this web-site to learn more about KPI financial.<br /><br />Document Reference: <a href="http://www.tablerodecomando.com/kpi-informacion-articulos-y-noticias-sobre-indicadores-de-gestion/" rel="nofollow">KPI</a><br /><br />Write-up Source: <a href="http://www.tablero-decomando.com/blog/?p=4715" rel="nofollow">KPI</a><br /><br />Document Resource: <a href="http://www.tablerodecomando.com/balanced-scorecard-no-es-util-hace-perder-tiempo/" rel="nofollow">Balanced Scorecard</a><br /><br />Report Supplier: <a href="http://www.tablero-decomando.com/blog/?p=4801" rel="nofollow">Balanced Scorecard</a><br /><br /><br /></div>

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