This is about modern management theory on value based management. It introduce concept of balance scorecard as a modern management tool

Essay by gargramUniversity, Ph.D.F, January 2003

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Traditional performance measures are insufficient to gauge performance and guide organizations in today's rapidly changing, complex economic landscape. Organizations need to link performance measurement to strategy, and must measure performance in ways that both promote positive future results and reflect past performance.

The Balanced Scorecard has developed over the last eleven years as a powerful way to implement strategy and continuously monitor strategic performance. Creating a strategy focused organization (the phrase coined by the founders of the Balanced Scorecard methodology) is a significant, challenging culture change for many organizations. Success in achieving this change requires:

· Consistent executive support and involvement.

· Education, communication, and visibility of the strategy and measurements of its effectiveness throughout the organization.

· Constant feedback loops so that strategy is an every-day consideration.

· Tools to enable non-technical users to understand the key drivers of the measures.

· Translation of the strategy to operational terms so that alignment to strategy and implementation of it occur at all levels of an organization.

Organizations that have successfully implemented the Balanced Scorecard have achieved remarkable transformations in their financial performance, in many cases vaulting to the top ranks in their industry groups.

Many aspects of Balanced Scorecard development and deployment depend on effective use of technology to be successful. Numerous software packages have been developed to help automate the Balanced Scorecard, but it is very difficult to deliver the needed capabilities in a single software package. Therefore, the Microsoft Balanced Scorecard Framework has been developed to allow organizations to:

· Develop and deploy a scorecard economically using an existing infrastructure.

· Manage and display the data and knowledge pertinent to Balanced Scorecards.

· Facilitate analysis of measures so that prompt corrective action can take place.

The framework provides a comprehensive, flexible, cost-effective way to deploy the Balanced...