Each department and each individual employee needs this information to contribute to improved collective results. Measurement gives information about how well the business strategy is progressing over time. It also gives a deeper understanding of how effectively all the moving parts of an organization work, thus providing an essential, ongoing learning tool to management. Measurement can also track the success of business initiatives for quicker reaction if problems arise. The balanced scorecard is an effective way to communicate ongoing results throughout the organization and to gain support for business initiatives.
All organizations have significant investments in systems infrastructure.
If a balanced scorecard is being used effectively, management is fully exploiting the information stored in these systems for the strategic benefit of the business. Benchmarking rewards to performance. Given the complex and constantly changing nature of this information age, it appears logical that, for many organizations, traditional financial measurements are not adequate in identifying the critical success factors they need to succeed. For these organizations, balanced corporate scorecards can serve as a valuable tool for clarifying stakeholder influences, defining objectives, measuring success and rewarding performance. Under these circumstances, the investment needed to develop and monitor an effective scorecard can be well justified compared to the consequences of being out of balance.