Balance Scorecard and Fuzzy Logic Control

Probably you have heard some people say: “I work very hard for my organization but nobody perceives my hardworking” or “While I as well as fulfill my obligations for my organization, my colleague who usually wastes all his/her time at the office, gains the most promotions” or “How can my organization assess the value of my activities at the office?”.

Let us assume, someone who starts his/her work at the office every day, will be able to track his/her ranking, points or value of activities among all staff of the organization on his/her PC after time out. It is clear, all above concerns and questions will be cleared in which the motivation of the staff to do their jobs will increase and consequently work efficiency and productivity will go up at workplace.

The Balanced Scorecard (BSC), organized by Kaplan and Norton (1992, 1993, and 1996), abandoned the traditional approach of concentrating on financial data, and focused on four general perspectives: financial, customer, internal business and innovation and learning. Balanced scorecard is a management system and strategic management planning which is started by Dr. Robert Kaplan and David Norton and they used that as a performance measurement framework. The balanced scorecard is using widely in industries, nonprofit organizations and government all around world to improve monitoring the organization’s performance and compare the organization’s goals with the actual performance and internal and external communications. This performance measurement framework was used first to give the managers a better view of organization performance specifically to compare the financial situation of the company. However this practice with the name of balanced scorecard introduced in 1990s, the background of that is older like General Electric that has performance measurement reporting in the 1950s and the work of French process engineers in 20^th century. The process of improving the balanced scorecard started from simple performance measurement framework to a general strategic planning and organizational planning mechanism.

Even though many companies utilize from BSC as a strategic management system, some research and case studies show us that nowadays it does not as well as work due to high speed changes around the world. Since a BSC framework is designed by using of a cause – effect system, we can use Fuzzy Logic Control to assign the accurate points and rankings into BSC framework (referred to previous articles of “External Forces and Pseudo-Forces to Design a Strategic Plan” and “What Is the Goal of a Central Bank in Related with Deficit Financing?”).