THE USE OF SCORECARDS FOR PERFORMANCE MEASUREMENT

Chioma Benedicta Ogbu, Chibuzo Ebere Anyanwu, Philip Okon Etim

Abstract


The balanced scorecard is a strategic planning and management system that is used extensively in business and  industry,  government  and  nonprofit  organizations  worldwide  to  align  business  activities  to  the  vision and strategy of the organization, improve internal and external communications, and monitor organization performance  against  strategic  goals.  A  major  consideration  in  performance  improvement  involves  the creation  and  use  of  performance  measures  or  indicators.  Through  the  analysis  of  data  from  the  tracking processes,  these  measures  or  indicators  themselves  may  be  evaluated  and  changed  to  better  support  such goals.  The  success  of  the  balanced  scorecard  or  a  similar  device  will  depend  on  the  clear  identification of  non-financial  and  financial  variables  and  their  accurate  and  objective  measurement  and  linking  the performance to rewards and penalties. The proponents of the balanced scorecard claim that it aligns with strategy  leading  to  better  communication  and  motivation  which  causes  better  performance.


Keywords


Balance scorecards, performance

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