Traditional Measures of Financila Performance and The Balanced Scorecard

The Balanced Scorecard (BSC) is a way of considering financial and non-financial aspects when determining the organization's performance level. Importance of measuring performance: According to Harvard instructor evaluation, there are several reasons to measure company performance. Improvement: By tracking performance, companies are facing issues such as reduced sales, revenue and profit leveled off, fixed costs, fluctuating factors etc identified and cost to cope. Plan and forecast: Performance assessment can be used as a progress check to determine whether a company has achieved its goals or to determine forecasts and budgets based on historical experience.

However, effective measurement must be an integral part of the management process. The HBR Balanced Scorecard, first introduced from January to February 1992 ("Balanced Scorecard - Measures to Promote Performance"), is aimed at converting the company's strategic goals into a consistent, We provide a comprehensive framework for executives. Indicator Balance Scorecard is a management system that can promote drastic improvement in major fields such as product, process, customer, market development, not just measurement.

The Balanced Scorecard is a set of indicators to comprehensively grasp all the achievements. Kaplan and Norton (1995) explains the Balanced Scorecard using the following terms. The Balanced Scorecard needs to convert the mission and strategy of the business unit into concrete goals and measurements. Balance between Measurements These measurements are the balance of the measurements of the results, the results of past efforts, and measurements to promote future performance. balance……"

A balanced scorecard is a conceptual model for evaluating the performance of an organization. This model complements financial indicators of past performance by measuring future performance factors. The Balanced Scorecard provides a system that supports the traditional financial and efficiency indicators our company currently offers for human resources and from three perspectives from customers, internal business processes, and performance indicators in terms of learning and growth . Kaplan and Norton (1996, Garrett W, J Randall McDonald, 2001)