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raditionally, performance measurement focuses on financial measures ......that do not match entirely with competencies & skills companies require to face today’s business environment.” In insisting that financial measures of performance are under criticism in today’s world, Paul Niven (2003) said that “they lack predictive power, reinforce functional silos, may sacrifices long term thinking and are not relevant to many levels of the Organisation.”. Kanji then supports the significant contribution by Kaplan & Norton (1992) to overcome the shortcomings of traditional PMS1 that employs only financial measures.

2.3 THE BALANCED SCORECARD (BSC)

Robert S. Kaplan and David P. Norton (2005) invented BSC in 1992 due to the fact that traditional accounting measures like Return on Investment and Earning per Share give misleading picture while in today’s business environment continuous improvement and innovation is very important. The authors realised that many managers do not depend on single set of measures in isolation of the other. This implied the need of balanced presentation of both financial and non financial measure. Kaplan & Norton complemented financial measures by operational measures calling it Balanced Scorecard (BSC).

Kaplan and Norton define BSC as, “a set of measures that gives top management a fast but comprehensive view of the business. The BSC includes financial measures that tell the results of actions already taken. And it complements the financial measures on customer satisfaction, internal processes, and Organisation innovation and improvement.” These (including financial measures) are the four perspectives of BSC as mentioned by the authors. They suggested that for each of the perspective, managers should translate their visions and missions to strategic goals and objectives and these goals should be translated into specific measures.

The word ‘Balance’ in the Balanced Scorecard represents the balance between financial and non financial performance indicators; internal and external elements & stakeholders of the Organisation; and lag & lead indicators (Paul Niven 2003). Michael Milgate (2004) defines scorecard as a “balanced management system in which shared vision and strategy are reference points for the management process; achieving this balance enables synergy and a practical fit with other frameworks”. BSC serves as a powerful tool as it focuses on achieving breakthrough performance considering all measures without isolating non financial performance measures (Kanji 2002).Since its creation in 1992 by Drs. Norton & Kaplan of Harvard Business School the Balanced Scorecard has been implemented by different business units in the Public as well as in the Private sectors-worldwide.( Michael E. Nagel- Vice President, BSC Collaborative)

Henri .JF (2006) applied the BSC framework in his survey on how top management in a manufacturing company could use PMS to improve the strategic management and Organisational performance. “Given its depth as a strategic management system, the BSC principle will continue to be widely adopted and further refined in user Organisation as experiences in its implementation emerge” ( Michael A.Milgate 2004). This shows how widely BSC 本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。