Developing and Using a Balanced Scorecard
The Balanced Scorecard (BSC) is considered to be one of the top strategic management frameworks all over the globe (Balanced Scorecard Institute, 2020). The scorecard combines four perspectives to help firms understand as well as achieve the set organisational objectives. These perspectives are customer, people, financial, and internal processes (Balanced Scorecard Institute, 2020). Typically, the Balanced Scorecard doesn’t create strategy but organizes the strategy in a visually-friendly manner.
Apple Incorporation, a fierce player within the technology market is recognized for its broad use of the Balanced Scorecard in their operation (Tudorache, 2020). Apple uses five indicators in its scorecard. These are the core competencies, shareholder value, customer satisfaction, market share, and employee commitment and alignment. Tudorache asserts that Apple mainly focused on their products and technology before adopting the scorecard (Tudorache, 2020). With the five indicators, it becomes easy to manage the long-term performance of the firm rather than using the controlling approach which is highly based on the short and medium-term performance. These indicators help in advancing the performance and activities of every unit in the firm (Tudorache, 2020). Generally, the balanced scorecard helps Apple to keep a logical track of their performance hence making it possible to meet objectives and overall goals.
References
Balanced Scorecard Institute. (2020, April 22). Balanced scorecard basics. https://balancedscorecard.org/bsc-basics-overview/
Tudorache, A. (2020, March 19). How Apple uses the balanced scorecard. Performance Magazine | Performance Management, Measurement & more!. https://www.performancemagazine.org/apple-balance-scorecard/