Balanced Score for the Balanced Scorecard: a Benchmarking Tool
Balanced score for the balanced scorecard: a benchmarking tool
Faculty of Production and Operations and Finance, Department of Management Studies, National Institute of Technology, Tiruchirappalli, India, and
Faculty of Human Resources and Finance, Department of Management Studies, National Institute of Technology, Tiruchirappalli, India
Purpose – The purpose of this paper is to create a model called “Balanced score for the balanced score card” and to provide an objective benchmarking indicator for evaluating the achievement of the strategic goals of the company. …show more content…
Need for incorporation of strategic intent in every activity Over the years, the economies have grown leaps and bounds and the companies themselves have outgrown several times. In order to grow further and at a rapid pace, most of them have branched out to become global players. This had forced them to meet larger competition and high volatility in the business environment they operate:
Strategy is the direction and scope of an organization over the long term: Which achieves the advantage for the organization through its conﬁguration of resources within a changing environment, to meet the needs of the markets and to fulﬁll stakeholder expectation ( Jhonson and Scholes, 2001).
Every act initiated by the competitors or its customers of the company has far reaching consequences. It may be that any single desire or the ambition by the top management can alter the destiny of the company.
Porter (1985) has suggested the ﬁve force model and in this model he provides emphasis on all the relevant factors that an organization should consider. He says that for an organization to succeed it needs to take into account the ﬁrm, its competitors, its suppliers, its customers and also its substitutes. If all these are not monitored properly and the linkages not understood correctly, then it can impede the performance of an organization. A study contrasting high- and low-performing organizations yielded the