Case Study: Siemens Balanced Scorecard

Siemens was founded by Werner von Siemens and Johann Georg Halske in Germany as a telegraph company in 1847. Over the years, the company expanded its operations to include electrical engineering, power generation, automation, healthcare, and various other sectors. Siemens has played a significant role in shaping the technology landscape and has become one of the world’s largest industrial manufacturing companies.

Siemens utilizes the Balanced Scorecard (BSC) as a strategic management tool to monitor and measure its performance across multiple dimensions. The Balanced Scorecard provides a balanced view of the organization’s performance by considering financial and non-financial indicators. Siemens employs the Balanced Scorecard for the following reasons:

Siemens customizes its Balanced Scorecard approach to align with its specific business needs and objectives. The company defines relevant metrics and targets for each perspective, sets performance goals, and regularly reviews and updates the Balanced Scorecard to ensure its effectiveness. Overall, the Balanced Scorecard helps Siemens assess its performance holistically, align its actions with strategic objectives, and drive continuous improvement across various dimensions of its operations.