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The aim of the balanced scorecard was to align business activities to the vision and strategy of the business improve internal and external communications and monitor.
Definition of balanced scorecard by kaplan and norton. A 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. The balanced scorecard 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.
Balanced scorecard and its four 4 perspectives helps in dealing with strategic planning and performance management. Typical definition of a balanced scorecard is strategic planning and management system used to align business activities to the vision statement of an organization. Kaplan norton s balanced scorecard model was developed in the early 1990 s as an attempt to help firms measure business performance using both financial and non financial data. Traditionally companies used only short term financial performance as the measure of success.
The phrase balanced scorecard primarily refers to a performance management report used by a management team and typically this team is focused on managing the implementation of a strategy or operational activities in a. The balanced scorecard or balance score card is a strategic performance measurement model which is developed by robert kaplan and david norton.
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