Essay Database

‘The Balanced Scorecard was devised to provide managers with a comprehensive method of evaluating corporate performance without placing extensive reliance upon traditional financial measures’ Critically examine the above statement The Balanced scorecard is an approach to performance measurement that combines traditional financial measures with non-financial measures to provide managers with more relevant information about activities they are managing. In addition to financial measures, which typically include, profitability, growth and shareholder value, managers are encouraged to …

…likely to succeed in long term financial objectives. The problems for companies in the past was that they weren’t looking beyond their financial objectives. Although the financial side of an organisation is important, it didn’t improve the long term growth, which is what most companies want. Using the balanced scorecard however made companies look at other aspects of their business and improving in these areas eventually translated into improved financial performance. Word count 1269