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Balance Business Score Card in KPI
The current era is driven by the information. It is a revolutionary transformation and industries are competing in this revolutionary era with the help of information, so the competition is now an information age competition. This era is more revolutionary for service industries and particularly for industries like electrical utilities because of regulatory regime and pressure from all the stakeholders. So in this era, service industries including electrical utilities require new capabilities, continuous improvement and innovation, efficient management of assets etc.
The major requirement can be broadly classified as follows:
It becomes imperative for organizations to compete and to meet the expectations of Customers, Shareholders and Employees. The organizations are adopting different management tools e.g. Benchmarking, Balanced Score Card, TQM, etc. and at the same point of time turning themselves to a variety of improvement initiatives viz. reengineering, activity based cost management, customer focused environment, employee empowerment etc. Moreover now- a-days things are changing so fast that one can say - "ONLY CONSTANT IS CHANGE" and organizations not only need to focus and manage the customer, financials, internal business processes and learning & growth aspects effectively and efficiently but also they require to realign their vision and strategy as indicated by the environment and business needs. We will discuss in subsequent section the importance of traditional model and need to have balanced score card to understand the transformation and the advantages of balanced scorecard over the traditional model to meet the growing demand created by the information age.
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