THE ROLE OF THE BALANCED SCORECARD AS A TOOL OF STRATEGIC MANAGEMENT AND CONTROL

Vanya Banabakova,Marin Georgiev

doi:10.18769/ijasos.417696

Abstract

Modern organizations focus on the importance of strategic management and control over current and short-term goals and their corrective role on the strategic success factors of the organization in the process of using the resources of the external environment, ignoring the challenges; as the priorities of the activity are to maximally satisfy public expectations, to minimize the spending of resources, to use its own priorities, to successfully overcome uncertainty and risk, to introduce the adequacy of management decisions against the background of reasonable and measured risk.. In the study alternatives are discussed as the Balanced Scorecard model suggested by observations and practice, and implications are provided in regard to changing and improving the architecture of the Balanced Scorecard (BSC) as a tool for management and control in conditions of high variability and uncertainty of the economic and social environment. Examined are some models in place to develop and implement the BSC and on this basis are structured conclusions and recommendations in the following aspects: the organization's strategy, which involves the application of BSC and the inclusion of elements to develop key aspects of the strategy; the potential of the BSC model and its application according to the different needs of management; the needs of the process of developing and implementing BSC and to further expand the applications of the BSC as a strategic management tool requiring an assessment of the expected status and priorities in the control of the indicators included.

Highlights

One of the features of recent decades is the rapid development of concepts, models and technologies for corporate governance
The analysis shows that, both as a model and as a feasibility and as a visual and potential, the model of the Balanced Scorecard (BSC) has a real opportunity to find the balance between the needs of social governance and the stated expectations of society
The BSC plays the role of a tool that is predominant to control the adequacy of the strategy in the process of its realization. From this point of view, it is necessary to conclude that, as a strategic control tool, the BSC is capable of well serving both the application of strategy concepts as a plan, and the application of the concept of strategy as emerging or developing. This makes the card a universal tool for management and control, which is organically integrated into the implementation of contemporary views on strategic management, regardless of their specificities and differences

Summary

INTRODUCTION

One of the features of recent decades is the rapid development of concepts, models and technologies for corporate governance. Adapting balance-toperformance analysis to new conditions, apart from paying attention to traditional measures, complements them with new indicators of expected status and development in the future The basis for this type of analysis is the validation of the Balanced Scorecard (BSC) presented in the early 1990s (Kaplan & Norton, 1992, pp.). The reason is that more and more managers find a need for more than mass-applied short-term reports, referring to the development of capabilities needed to the organization which will be )successful in the future, these changes may deprive them of profits in the current year and lead to increased spending This is the fundamental reason why companies need the balanced scorecard. Not that the monetary criteria have become less important, and in this connection it is necessary to form a balance in the transition from financial to strategic management of the activity of the organizational activity

EVOLUTION OF THE CONCEPT OF THE BALANCED SCORECARD

THE BALANCED SCORECARD - A PARTICULAR FORM OF MANAGEMENT THINKING AND CONTROL

CONCLUSION