The Development and Enhancement of a Balanced Scorecard System in Management Accounting of an Enterprise
Abstract
A popular strategic management tool for converting an organization's vision and strategy into attainable goals and performance indicators is the Balanced Scorecard (BSC). Traditionally, the BSC has focused on four primary perspectives: financial, customer, internal processes, and learning and growth. However, as business environments evolve and organizations face increasing pressures to maintain operational excellence, manage costs efficiently, and adhere to regulatory requirements, it has become necessary to enhance the traditional BSC framework. This research proposes developing and enhancing the BSC system by incorporating two additional perspectives: quality and compliance and cost management. Organizations are empowered to align strategic objectives across departments and make well-informed decisions thanks to this improved BSC framework.