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Can the Use of Balance Score Card Guarantee Survival and Growth in Today`s Era of Economic Uncertainty?


Affiliations
1 Jaipuria Institute of Management, Lucknow, Uttar Pradesh-226010, India
 

Due of the increasing globalization and technological disruptions the enterprises have become more vulnerable. They are not only affected by the transformations happening in their economy, rather they also get affected by the development in the other parts of the world. The use of balanced scorecard as a tool of performance measurement gained significance in the recent times. In this backdrop the main aims of this research was to (1) to determine the relevance of Balanced Scorecard for the survival and sustainability of an enterprise, (2) prepare a theoretical framework, (3) understand the concept of balance score card, and (4) analyze how BSC can helps to achieve the strategic goals and safeguard the survival. The current study revealed that unlike traditional performance measurement tools the balance score card presented cause-and-effect linkages between financial and non-financial perspectives and proved that advances in intangible assets get translated into tangible outcomes such as financial returns, large customer base and value creation. Hence rather than focusing only on the financial returns it is far more advisable that the business enterprises strategically design and implement the non-financial perspectives to ensure survival and growth in the times of economic uncertainty.

Keywords

Balance Scorecards, Financial Customer, Internal Processes, Learning and Growth.
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  • Can the Use of Balance Score Card Guarantee Survival and Growth in Today`s Era of Economic Uncertainty?

Abstract Views: 156  |  PDF Views: 101

Authors

Reena Agarwal
Jaipuria Institute of Management, Lucknow, Uttar Pradesh-226010, India

Abstract


Due of the increasing globalization and technological disruptions the enterprises have become more vulnerable. They are not only affected by the transformations happening in their economy, rather they also get affected by the development in the other parts of the world. The use of balanced scorecard as a tool of performance measurement gained significance in the recent times. In this backdrop the main aims of this research was to (1) to determine the relevance of Balanced Scorecard for the survival and sustainability of an enterprise, (2) prepare a theoretical framework, (3) understand the concept of balance score card, and (4) analyze how BSC can helps to achieve the strategic goals and safeguard the survival. The current study revealed that unlike traditional performance measurement tools the balance score card presented cause-and-effect linkages between financial and non-financial perspectives and proved that advances in intangible assets get translated into tangible outcomes such as financial returns, large customer base and value creation. Hence rather than focusing only on the financial returns it is far more advisable that the business enterprises strategically design and implement the non-financial perspectives to ensure survival and growth in the times of economic uncertainty.

Keywords


Balance Scorecards, Financial Customer, Internal Processes, Learning and Growth.

References