Company is using EFQM approach and has heard good reviews about BSC approach. So is it true and what are the advantages and pitfalls of BSC and how will it be important to achieve the goal of performance management

The Balanced Scorecard (BSC) approach is indeed a well-regarded performance management tool. It was developed by Robert Kaplan and David Norton in the early 1990s. The BSC approach provides a balanced view of an organization's performance by looking at four perspectives: financial, customer, internal process, and learning and growth.

Advantages of BSC:

1. Balanced Perspective: It provides a balanced view of the organization's performance by considering financial and non-financial measures.
2. Strategic Alignment: It helps in aligning business activities to the vision and strategy of the organization.
3. Improved Communication: It helps in communicating the strategy and objectives of the organization to all levels.
4. Performance Measurement: It helps in measuring the performance against the set objectives.

Pitfalls of BSC:

1. Implementation Challenges: It can be complex to implement and requires a clear understanding of the organization's strategy.
2. Time-Consuming: The process of developing a balanced scorecard can be time-consuming.
3. Overemphasis on Financial Measures: There can be an overemphasis on financial measures, which can lead to neglect of non-financial measures.
4. Resistance to Change: There can be resistance from employees due to the change in performance measurement approach.

The BSC approach can be important for achieving the goal of performance management as it provides a comprehensive view of the organization's performance. It helps in identifying areas of improvement and aligning the activities with the organization's strategy. However, it should be noted that the success of the BSC approach depends on its proper implementation and the organization's commitment to continuous improvement.

As for the EFQM (European Foundation for Quality Management) approach, it is a non-prescriptive framework for organizational management systems, designed to help organizations achieve excellence. Both EFQM and BSC can be used together, as they complement each other. EFQM provides a holistic view of the organization and its context, while BSC helps to measure and manage performance in key areas.