The name “balanced scorecard” comes from the idea of looking at strategic measures in addition to traditional financial measures to get a more “balanced” view of performance it’s this focus on both high-level strategy and low-level measures that sets the balanced scorecard apart from other performance management methodologies. The balanced scorecard is used to attain objectives, measurements, initiatives and goals that result from these four primary functions of a business companies can easily identify factors hindering company performance and outline strategic changes tracked by future scorecards.
Balanced scorecard - definition what exactly is a balanced scorecard a definition often quoted is: 'a strategic planning and management system used to align business activities to the vision statement of an organization. The balanced scorecard revolutionized conventional thinking about performance metrics when kaplan and norton first introduced the concept, in 1992, companies were busy transforming themselves to compete in the world of information their ability to exploit intangible assets was becoming more decisive than their ability to manage physical assets.
The balanced scorecard institute provides training and consulting services to help organizations with balanced scorecard, strategic planning, and kpi development. A balanced scorecard defines what management means by 'performance' and measures whether management is achieving desired results a balanced scorecard defines what management means by performance and measures whether management is achieving desired results. The balanced scorecard translates a company's vision and strategy into a coherent set of performance measures the four perspectives of the scorecard--financial measures, customer knowledge, internal business processes, and learning and growth--offer a balance between short-term and long-term objectives, between outcomes desired and performance drivers of those outcomes, and between hard objective measures and softer, more subjective measures.
Though still in the preliminary stages of development, balanced scorecards could represent the emergence of a new era of management sophistication, in which both the hard and soft variables of work life are taken into account in a rigorous, testable fashion. The balanced scorecard (bsc) was originally developed by dr robert kaplan of harvard university and dr david norton as a framework for measuring organizational performance using a more balanced set of performance measures traditionally companies used only short-term financial performance as measure of success.
With the balanced scorecard at the center of its management systems, a company can monitor short-term results from the three additional perspectives—customers, internal business processes, and learning and growth—and evaluate strategy in the light of recent performance. Editor’s note: in 1992, robert s kaplan and david p norton’s concept of the balanced scorecard revolutionized conventional thinking about performance metrics by going beyond traditional.
Balanced scorecards - simple summary of kaplan and norton's organizational strategic management tool, and learning aid diagram. The balanced scorecard was developed in the early 1990s by two guys at the harvard business school: robert kaplan and david norton the key problem that kaplan and norton identified in the business of the day was that many companies tended to manage their businesses based solely on financial measures.
The balanced scorecard is a strategy performance management tool – a semi-standard structured report, that can be used by managers to keep track of the execution of activities by the staff within their control and to monitor the consequences arising from these actions.