What is the relation between Balanced Scorecard and Good Corporate Governance

Corporate governance is a matter of enormous public attention and concern. More was published on this topic in the past 12 months than in the last five years combined. Much of the press provides governance practices and control recommendations that introduce more regulation into the governance process. While tough measures such as Sarbanes-Oxley Act and the SEC orders and regulations reforms are necessary, given recent events, they are not sufficient.

Corporate leaders need a modern set of tools that provide greater visibility into their organizations and strengthen corporate governance and corporate performance management. There are three-part Balanced Scorecard-based system, i.e., the Board Balanced Scorecard, Corporate Balanced Scorecard and Executive Balanced Scorecard integrated into cohesive information technology foundation. The users of these scorecards are the board of directors, executive management, general managers, and executive staff respectively.

To meet the reporting deadlines imposed by new legislation, organizations must operate at maximum efficiency. Business applications can remove complexity and increase visibility enabling firms to confidently face new governance demands. A truly efficient business system operates on a single data model with data consolidated in one location. Integrated applications architecture and automated business flows quickly move business data among global front and back office operations. This allows integrated Balanced Scorecards to represent up-to-date performance metrics across the enterprise to appropriate user communities.