How to Build a Successful Balanced Scorecard

The Balanced Scorecard concept has been adopted by all types of organizations (manufacturing and service, for-profit and not-for-profit, private and public) in virtually every developed and developing nation in the world and it has evolved from its initial purpose of an improved performance measurement system to become the basis of a new management system, one that aligns and focuses the entire organization on implementing and improving its strategy. Niven’s opinion is that Balanced Scorecard means three things: measurement system, strategic management system, and communication tool. The paper talks about the Balanced Scorecard philosophy and the issues that need to be solved for a successful BSC implementation an provides recommendations for the formulation and implementation of the Balanced Scorecard.