Impact of Balanced Scorecard
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Impact of Balanced Scorecard
A balanced scorecard is a model for measuring strategic performance to transform a firm’s mission and vision into operational actions. The model is used in measuring and providing feedback to organizations. The quantitative results from BCS tool are used by business managers to collect and interpret crucial information for making better strategic decisions. The BSC methodology is extensively used as a knowledge management tool. The tool impacts the creation of knowledge, culture, and strategy in multiple ways.
As a knowledge management tool, the balanced scorecard is used as a measurement of created knowledge. The balanced scorecard looks at the organization from four different dimensions to measures its health. The four dimensions capture different sides of an organization, thus creating a balanced perspective of an organization. The concept is also applied in determining the linkage between data and information. By offering measurable outcomes utilized by operational staff to enhance knowledge creation, BSC aids in leveraging knowledge management. The learning and growth dimension impact the overall corporate culture. It facilitates collaboration and sharing of knowledge. The BCS strategies are also integrated and implemented within communities to influence cultural practice and language. Balanced scorecard facilitates the identification of required changes in the firm, thereby helping in the transformation of culture and business strategies. Generally, the BSC created knowledge, culture, and strategy can be leveraged for the benefit of the business.
Understanding the concept of a balanced scorecard is critical to improving operational performance. The concept has a direct impact on organizational performance through the creation of knowledge, business strategies, and culture. Today’s global business strategy and financial performance are highly dependent on knowledge creation, culture, and strategy. In conclusion, the balanced scorecard is a knowledge management tool which provides measurable outcomes utilized by operational staff to enhance knowledge creation, and influence organizational performance.
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