Applying Balanced Scorecard Assignment Example | Topics and Well Written Essays - 250 words

Applying Balanced Scorecard - Assignment Example Businesses were faced by unclear situations of distinguishing an important aspect from what is not. Kaplan and Norton stated that the important aspects of a business should be presented in a balanced way. A balanced scorecard has three basic components that are important. They include strategic management framework, measurement system and communication tools (Blokdijk, 2008). The banking industry, greatly benefits from the balanced scorecard and management system. The BSC system helps managers in the banking sector accomplish the institution’s objectives. The major scorecard perspectives that can be implemented by managers are better-quality customer service and efficiency in the internal business processes (Blokdijk, 2008 p 113). Banks strategies are always based on the customer and therefore with improved customer service, the bank will end up improving on its profits, sales and turnovers. Banking industries are also able to improve by ensuring that they have efficient business processes. Blokdijk (114) states that with efficiency in the internal business processes, a banking industry will be able to retain its customers. With retained customers, the financial returns go up and the thus improvement in the