Balance Scorecard’s Useful Perspective for the Company

Balance Scorecard’s Useful Perspective for the Company

Balance Scorecard is a method of measuring the work of the company. The lesson about the Balanced Scorecard may have been discussed while you were in college. However, many people are still misperceptions and can not yet understand the meaning and usage.

Basically, Balance Scorecard (BSC) is a balanced card that is used as a medium to measure the operational activities undertaken by a company. With BSC, the company becomes more aware of the extent to which the movement and development has been achieved. The existence of BSC also helps the company to provide a comprehensive view of the performance of the company.

In order for the company’s performance more effectively and efficiently, it takes an accurate information that represents the work system undertaken. In BSC, there are four types of perspectives to know the size of company performance. What are they?

1. Financial Perspective (Financial Perspective)

Financial perspective or financial perspective is closely related to corporate income and expenditure. In other words, the company must be able to manage finances well in order to keep its financial stable. For example, operational costs, production costs, raw materials costs, labor costs, including profits from sales activities.

Both income and expenditure, both must be recorded in a coherent and clear manner. In order for the financial side to observe the financial growth rate of the company concerned.

There are three benchmarks in the financial perspective, namely:

Growth of the increase earned during business process takes place.
Decrease in assets to the optimal direction and maximize investment strategy.
Decrease in costs and increase work productivity,
These three benchmarks above can serve as guidelines for running a business. That way, the company owner knows at what stage the company is located.

2. Customer Perspective (Customer Perspective)

Customer perspective or customer perspective is closely related to the way the company serves customers. In this case, every customer should be treated appropriately. That way, they are satisfied with the service provided.

The existence of good service will certainly increase customer loyalty to the company. Conversely, if the service is bad, consumers will look for other companies that have a better system.

There is also a set size of the company in the perspective of customers, among others:

3. Internal Process Perspective (Internal Business Process Perspective)

Internal Process Perspective Internal Business Process Perspective
Taking into account the Company’s Internal Conditions is Also Important in the Balanced Scorecard

In the internal process perspective, the company assesses the size and synergy of each work unit. To measure this point, the company leader must regularly observe how internal conditions within the company. Whether everything is run in accordance with the established method or even deviated from the rules.

The capabilities and expertise of each employee will result in a good internal business process. In addition to increasing the number of consumers, turnover and profits to the company will also increase.

There are three things to note in the perspective of internal business processes, among others:

The process of innovation relates to ideas on the production of goods.

The operation process deals with daily activities and routines that are carried out internally.

Post sales process deals with appropriate marketing methods to increase sales turnover.

4. Learning and Growth Perspective (Perspective of Learning and Growth)

Learning and Growth Perspective Learning and Growth Perspective

Learning and Growth Perspective Also Included Important Size

Employees become an important element that must be maintained by the company. Without employees, the process of growth and development of the company will face many obstacles. Employees also serve as supporters in financial and customer perspectives. Therefore, what the company plans to achieve maximum target.

In addition to the existence of employees, companies also need to pay attention to what kind of system and work procedures that need to be applied in internal company. It is better if all elements are well controlled and coordinated so that the harmony arises during the business.

There are three things that benchmarks in this perspective, among others:

Employee capability or ability.
Ability to manage information systems.
Motivation, encouragement, and line of responsibility

Balance Scorecard Helps Corporate Performance

The existence of BSC is very important for the company. The existence of BSC has been proven to make the company able to create competitive competition. Companies are also not afraid anymore if dealing with larger competitors.

With BSC, the company knows better the weaknesses. That way, the process of finding solutions is also faster and more accurate.