Importance of Balanced Scorecard for Growth of SME Sector

Abstract

The balanced scorecard is a strategic planning and management system that is used extensively in business and industry, government, and nonprofit organizations worldwide to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic Goals. Balanced Scorecard in Large Enterprises, Application of the Balanced Scorecard in SMEs Balanced Scorecard used by SMEs exists today should not be taken as an indication that Balanced Scorecard implementation is only appropriate for large organisations, The Balanced Scorecard was originally proposed as an approach to performance measurement that combined traditional financial measures with non-financial measures to provide managers with richer and more relevant information about organisational performance, Characteristics of Small and Medium Sized Enterprises, Designing a Balanced Scorecard based Strategic Management System in an SME, Describing Strategic Destination, Strategic objectives Once the strategic destination has been established the next step is for the same group to agree on the most important strategic activities and outcomes (strategic objectives) required for the destination to be achieved. Balance score card - sme sector Each company should determine its own aims and measures connected within an area of its activity. Some examples of such preliminary analysis for SME company are presented below. Measures Balanced Scorecard designs in large enterprises normally include an elaborate process for identifying and describing measures selected to inform management about the organisation's progress towards achievement of its goals.