The balanced scorecard as a basis for strategic company management in the context of the world economy transformation

Abstract

The objective of this article is to develop a common methodological concept of creating the Balanced Scorecard (BSC) and the determination of a set of key performance indicators for manufacturing type companies. Authors came up with the following conclusions.Efficient business management under contemporary conditions becomes a complex task. Within this task, managers must not only timely identify capabilities of the external environment, but also look for internal growth reserves. When applying these reserves, manager should take into account the evolvability of the company and possible threats to the company development.There are many ways, methods and approaches to improve the strategic business management of contemporary companies. At that, the technique, which is based on the Balanced Scorecard, remains the most appropriate approach to build and structure company business management, as well as elaborate the long-term development strategy.The Balanced Scorecard is a special set of indicators that are of equal importance for analyzing and evaluating the operation and business development of companies. The Balanced Scorecard is focused on meeting the information needs of strategic planning and management.Created Balanced Scorecard must meet the basic requirements for managerial information, as well as show the development dynamics of all functional subsystems and business areas. Besides, the Balanced Scorecard should be adaptive and able to be updated when changing exogenous trends or shifting paradigm of managerial decisions;The Balanced Scorecard can be used not only in the strategic management of large companies, but can also be used by small and mid-sized companies. Small and mid-sized businesses can use a limited number of indicators, most important to make sound and rational managerial decisions.