Benefits of Using Balanced Scorecard in Strategic and Operational Planning

Abstract

Formulation of the organizational strategies is a complex phase of strategic and operating management in which based on the given information we need to create the future directions for functioning of the organization. Many times in that process the teams for strategic planning rely on the financial reports which represent the financial perspective, neglecting at first sight "the irrelevant" activities that can wait. In the future, this approach can be fatal for a certain organization. Therefore emerges the need for application of Balanced Scorecard as already proven concept to assist the teams in making future strategic plans, which from there will also depend on the operating and organizational strategy. During that is created a solid foundation for the organizations not to focus only on the financial aspects, but also on the internal processes and the human resources.The main goal of this paper is to give a theoretical review of the benefits of using the concept of adjusted balance. The narrower goal is to see how the process of strategic planning the organization directs its efforts towards various aspects because of that distribution in a great deal will depend on the activities of the operating management.