Designing a balance scorecard for the american university in the Essay - 1

Designing a balance scorecard for the american university in the emirates - Essay Example An American University aims to open an affiliate in the United Arab Emirates. However, in order to ensure effective establishment and development of this University, the management needs to develop a comprehensive strategic framework such as Balanced Scorecard. However, there is limited knowledge and understanding of how to apply this framework to educational sector as Balanced scorecard model is mainly applied in commercial sector (Karathanos & Karathanos, 2005). The objective of this paper is to provide an overview of how the framework of a balanced scorecard can be applied to the education sector. Based on the research findings it will be possible to design a balanced scorecard for educational institutions at University level. Furthermore, this paper aims to develop some recommendations in relation to the American University in the United Arab Emirates. The Balanced Scorecard (BSC) is a framework used for tracking and measuring performance. Robert Kaplan and David Norton have introduced the BSC in the early 1990s as a new way for organisations to measure their performance in a comprehensive and integral way. Before, organisations relied only on financial indicators in order to monitor their achievements (Bakhtiari, et al. 2012). However, Kaplan and Norton have expanded this approach, offering a more balanced system. This system is comprised of four major perspectives: financial perspective, customer perspective, internal processes perspective, and learning and growth perspective (Bakhtiari, et al. 2014). All these perspectives have causal relationship among performance indicators and performance measures should be linked to the results (Sudirmann, 2012). The financial perspective is viewed to be the primary perspective of any commercial activity. The primary goal of any commercial activity is to generate revenue and create wealth for its shareholders. The companies set financial goals and develop strategies how to achieve