The Balanced Scorecard, Alphabet of the Modern Management: From Concept to Implement

14 Pages Posted: 18 Apr 2013  

Akbar Javadian Kootanaee

Islamic Azad University (IAU) - Faculty of Management & Accounting

Hamidreza Javadian Kootanaee

University of Tehran

Hosein Hoseinian

Independent

Hamid Foladi Talari

Islamic Azad University (IAU)

Date Written: Jan 2013

Abstract

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.

Keywords: balanced scorecard, management accounting, financial measures

JEL Classification: L16, L90, M40, M11

Suggested Citation

Javadian Kootanaee, Akbar and Kootanaee, Hamidreza Javadian and Hoseinian, Hosein and Talari, Hamid Foladi, The Balanced Scorecard, Alphabet of the Modern Management: From Concept to Implement (Jan 2013). Available at SSRN: https://ssrn.com/abstract=2253220 or http://dx.doi.org/10.2139/ssrn.2253220

Akbar Javadian Kootanaee (Contact Author)

Islamic Azad University (IAU) - Faculty of Management & Accounting ( email )

Tehran
Iran

Hamidreza Javadian Kootanaee

University of Tehran ( email )

Amirabad e shomali, kuye daneshgah e Tehran
Tehran, Tehran 5433174616
Iran

Hosein Hoseinian

Independent ( email )

No Address Available

Hamid Foladi Talari

Islamic Azad University (IAU) ( email )

Tehran, Isfahan
Iran

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