KNOWLEDGE MANAGEMENT AND BALANCED SCORECARD CONCEPT PRINCIPLES APPLICATION AS AN ACCELERANT OF ORGANIZATIONAL EFFICACY

Abstract

A new strategic management system, if it’s adequately implemented, can change an entire organization in a way to became more effective and efficient, and the most of strategic management authors and practicers agree that implementation of an organizational strategy is more difficult than its formulation. In today’s dynamic, highly competitive environment, organizations have to devote significant time, as well as human and financial resources to measuring their performance in order to achieve their strategic goals. Therefore, organizations must implement an appropriate strategic management and performance measurement system, which is suitable for capturing the value of tangible and intangible assets such as employee satisfaction, organization innovation potential, and customer and supplier relationships. The facts show that the significance of strategy is more important today then it has ever been. The balanced scorecard has emerged as a proven and effective tool in organization’s request to capture, describe, and translate intangible assets into real value and allow organization to implement differentiating strategies successfully, which will help them for better functioning in contemporary global economic world. It is very important fact that balanced scorecard concept, making some specific and appropriate correction, became widely applicable in public sector organizations and in non-profit organizations within developed economies. Thus, the business and organizational practice, which is widely used in developed economies organizations, should be implementing in domestic organizations, because it will admit to faster eligibility conditions and standards of access to European Union by the domestic business organizations and guvernment institutions. Keywords: Balanced Scorecard Concept, Strategic map, Knowledge Management, Learning organization principles, Measurable Organizational Value