Balanced Scorecard Advantages

The Balanced Scorecard is a strategy for those companies improving their financial performance in each industry. The Balanced scorecard is a management tool of planning for use in business and industries. The balanced scorecard provides the frame work that helps companies turn their vision and mission into a performance measures. It should use in a different way such as utter and discuss the strategy of the business to help them achieve their goals.

The balanced scorecard is not only included traditional financial measures which it also such as qualitative measures, for example like employee satisfaction, mission of corporate and loyalty of customers. The companies have gained raising popularity that adjustment action of employee and goals

There are not only is the financial element, and also included customers, business processes, learning and growth. Since the Balanced Scorecard method is presented, its comprehensive concept of enterprise assessment and long-term development concerns the full attention of the academic community and the business community, many companies try to introduce the Balanced Scorecard as a business management tool.

There are some advantages of implement the Balanced Scorecard management method. First is to overcome the short-term behavior of financial assessment methods and concerted action of the entire company use the strategic objectives.

Strategies into effective organizational layers will be organized for the performance indicators and actions. Employees at all levels of the organization contribute to the objectives and strategies of communication and understanding;

BSC also can help to develop the learning and growth of the company to achieve long-term company 's development and improve the company 's overall management level through with BSC. The disadvantages of BSC are the Balanced Scorecard trying to make it "Automation", which it’s difficult to use. BSC has some entries are difficult to explain or measure out. Defining performance

The company difficult to define targets of KPI, its more concern about quantitative indicators, and these quantitative indicators is crucial impact on business performance without the use of specialized tools and instruments. KPI assessment is being distracted to make way mechanical assessment. This is because too much reliance on assessment indicators will produce some assessment on the controversy and disagreement. KPI is not suitable applicable for all positions.

KPI is a superior system and easier to operate compare with BSC. This is because it has a clearly target and easier to understand for each company. It helps the company easy to achieve its goals and improve its performance. The Balanced scorecard is a difficult system for some companies, which it’s hard to control and determine the targets. Even though the company knows what the customer demands are, it also didn’t have strategy to achieve the customer demands. The Balanced scorecard is a strategy to make a performance measures in four perspectives, but didn’t has the solution to solve the