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Organization is comprised of several set of activities and functional plans which are performed with a view to achieve certain goals and objectives. With the increasing ramification of business process, many organizations are coming up the balance score card approach to make effective level of value chain activities (Niven, 2014).
There are four dimensions which are used under balance score card approach by the organizations to develop effective value chain activities such as finance, internal business processes, learning growth and customers. After analysis all the facts and data on balance score card, it is evaluated that these four dimensions are important for each and every organizations. It helps organizations to reduce overall cost of capital and customized value chain activities. However, companies which are trying to develop core competency in its business functioning will give more importance to internal business process and customers. Ideally, most of the companies give importance to internal business functioning and its clients. After satisfying concerned needs and want rest focus is made on other factors. In addition to this, importance of these factors by organizations depends upon their business functioning and developed value chain activities (Sainaghi, Phillips and Corti, 2013).
Now in the end, it would be inferred that companies would give more importance to customers then after internal business process then finance and then learning growth in its balance score card approach. However, these factors would be highly interconnected with each others. Therefore, organizations should gauge each and every dimension of its balance score card in effective manner.
Niven, P.R., 2014. Balanced Scorecard Evolution: A Dynamic Approach to Strategy Execution. John Wiley & Sons.
Sainaghi, R., Phillips, P. and Corti, V., 2013. Measuring hotel performance: Using a balanced scorecard perspectives’ approach. International Journal of Hospitality Management, 34, pp.150-159.
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