Definition Of Balanced Scorecard

What is a balanced scorecard.

Definition of balanced scorecard. The balanced scorecard was developed in the early 1990s by two guys at the harvard business school. Each of these perspectives focuses on a different side of your company creating a balanced view of your organization. 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 management system aimed at translating an organization s strategic goals into a set of performance objectives that in turn are measured monitored and changed if necessary to ensure that the organization s strategic goals are met.

Robert kaplan and david norton. This article explains the balanced scorecard developed by robert kaplan and david norton in a practical way after reading you will understand the basics of this powerful strategy and performance management tool. The balanced scorecard bsc is a business framework used for tracking and managing an organization s strategy. By evaluating internal processes and measuring their results management can change.

It was first introduced in 1992 by david norton and. Meaning pronunciation translations and examples. The four balanced scorecard perspectives. In other words it s a system that analyzes how internal functions of a company influence or affect the overall performance of the company.

A balanced scorecard is a performance metric used to identify improve and control a business s various functions and resulting outcomes. The bsc framework is based on the balance between leading and lagging indicators which can respectively be thought of as the drivers and outcomes of your company goals. A balanced scorecard is metric that measures a business performance and is used to implement an organizational mission or strategy. A balanced scorecard looks at your organization from four different perspectives to measure its health.