Question

What Balanced Scorecard measures would be important to a large company? A small company? Give examples and explain.

Answer 1

The balanced scorecard is a planned performance model of measurement and its purpose is to translate the mission of organization and vision into the actual actions. It has both the measures which are of financial as well as non- financial.

This scorecard displays how an entity is accomplishing its objectives relating to stakeholders. It results in the four performance dimensions
which are as follows:
a) Financial
b) Customer
c) Internal process
d) Learning and growth

The balanced scorecard is usually used by large organizations for managing the communication and strategy formulation. It is also necessary for the small organization for better maintenance as performances can be monitored easily.