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BALANCED
SCORECARD*
The
Balanced Scorecard (BSC) translates an organization's mission and strategy into
a comprehensive set of performance measures that provide the framework for a
strategic measurement and management system.
The
scorecard measures organizational performance across four balanced perspectives:
The BSC will enable an
organization to track financial results while simultaneously monitoring progress
in building the capabilities and acquiring the intangible assets they need for
future growth.
An organization will be
able to measure how their business units create value for current and future
customers and how they must enhance internal capabilities and the investment in
people, systems, and procedures necessary to improve future performance. While
retaining via the financial perspective, an interest in short-term performance,
the BSC reveals value drivers for superior long-term financial and competitive
performance.
Benefits of
Balanced Scorecard
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Clarifies and
translates vision and strategy
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Communicates and
links strategic objectives and measures
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Plan, set targets,
and align strategic initiatives
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Enhances strategic
feedback and learning
*Robert S. Kaplan and David P. Norton, "Using the Balanced Scorecard as a
Strategic Management System"
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