Using the balanced scorecard. The balanced scorecard offers a simple method for articulating strategy to employees and then monitoring the progress toward these goals. Hermanson, Dana R. and Heather M. Hermanson. The author describes a system defining long-term corporate goals, setting the steps to achieve these goals, and measuring performance toward the objectives using a balanced scorecard program. Kaplan, Robert S. Devising a balanced scorecard matched to business strategy.
Balanced scorecards are management tools that help evaluate performance and encourage good planning.
Traditional financial measures focus on past transactions and original expenditures without sufficient focus on long-term benefits. The balanced scorecard can be used to integrate and evaluate the effectiveness of planning and financial processes. Kaplan, Robert S. New systems for measurement and control. The author suggests management accounting systems that will give operational control, add activity-based costing, and assist capital investment decisions. Kaplan, Robert S. and David P. Norton.