The Balanced Scorecard (BSC) concept was first introduced in the early 1990s. BSC was originally developed by Dr. Robert Kaplan of Harvard University and Dr. David Norton as a framework for measuring organizational performance using a more balanced set of performance measures. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay According to (Tayler, 2010) The Balanced Scorecard is considered one of the most significant developments in management accounting. Nowadays it is used by managers all over the world to make their decisions (Rigby and Bilodeau, 2015). BSCs are used largely in business and industry, government, and non-profit organizations around the world. More than half of major companies in the United States, Europe and Asia use BSC, with usage growing in those areas, as well as in the Middle East and Africa. A recent global study placed the Balanced Scorecard in fifth place in the top ten of the most widespread companies. management tools used worldwide. BSC was also selected by the editors of the Harvard Business Review as one of the most influential business ideas of the past 75 years. What makes BSC unique is that traditionally companies have only used short-term financial performance as a measure of success. The “balanced scorecard” added additional non-financial strategic measures to the mix to better focus on long-term success. The system has evolved over the years and is now considered a fully integrated strategic management system. The Balanced Scorecard is a design for describing an organization's activities across a series of measures for (usually) four perspectives, using a limited number of measures for each. The description can refer to the company's current performance or its objectives for the next period. Some would say this is another way of reporting performance that combines financial and non-financial metrics. But there's more to the scorecard than immediately meets the eye. The BSC suggests seeing the organization from four perspectives and developing objectives, measures (KPIs), targets and initiatives (actions) related to each of these points of view: Financial: often renamed Stewardship or other more appropriate name in the public sector, this perspective considers the financial performance of the organization and the use of financial resources. Customer/Stakeholder: This perspective considers the organization's performance from the perspective of the customer or other key stakeholders that the organization is designed to serve Internal Process: Views organizational performance through the lens of quality and efficiency related to our products or services or other key business processesOrganizational Capability (originally called learning and growth): View organizational performance through the lens of human capital, infrastructure, technology, culture, and other capabilities that are critical to achieving breakthrough performance.*The Scorecard is balanced: this means that the four perspectives aim at a complete description of what we need to know about the organisation's business. A bottom-up time dimension, current profitability, etc. they may largely be a consequence of what was done in the last quarter or last year; if new skills are added now, this should have consequences for next year's efficiency and finances. Please note: this is just an example. Get a customized document from our writers now.