The Balanced Scorecard, Alphabet of the Modern Management: From Concept to Implement
Akbar Javadian Kootanaee
Islamic Azad University (IAU) - Faculty of Management & Accounting
Hamidreza Javadian Kootanaee
University of Tehran
Hamid Foladi Talari
Islamic Azad University (IAU)
The balanced scorecard is one of the most successful, endurable management concepts in recent years. The balanced scorecard is a performance measurement tool developed in 1992 by Harvard Business School professor Robert S. Kaplan and management consultant David P. Norton. Kaplan and Norton's research led them to believe that traditional financial measures, such as return on investment, could not provide an accurate picture of a company's performance in the innovative business environment of the 1990s. The balanced scorecard provides a framework for managers to use in linking different types of measurements together. Kaplan and Norton recommend looking at the business from four perspectives: the customer's perspective; an internal business perspective; an innovation and learning perspective; and the financial (or shareholder's) perspective. Using the overall corporate strategy as a guide, managers derive three to five goals related to each perspective. Then they develop specific measures to support each goal.
Number of Pages in PDF File: 14
Keywords: balanced scorecard, management accounting, financial measures
JEL Classification: L16, L90, M40, M11
Date posted: April 18, 2013
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