Transforming company policies into objectives and specific goals creates a balanced scorecard. Here's why:
* Strategic Alignment: The balanced scorecard translates a company's strategic vision and policies into actionable goals and objectives across various perspectives (financial, customer, internal processes, learning, and growth).
* Performance Measurement: It provides a framework for measuring performance against these goals, ensuring that all levels of the organization are aligned and working towards the same objectives.
* Holistic View: The balanced scorecard offers a comprehensive view of organizational performance by including both financial and non-financial metrics.
* Continuous Improvement: By regularly reviewing performance against the balanced scorecard, organizations can identify areas for improvement and adjust their strategies accordingly.
References:
Kaplan, R. S., & Norton, D. P. (1996). The Balanced Scorecard: Translating Strategy into Action. Harvard Business Review Press.
Niven, P. R. (2006). Balanced Scorecard Step-by-Step: Maximizing Performance and Maintaining Results.
Wiley.