Summary: The Balanced Scorecard helps organizations measure performance by combining financial data with future performance drivers. It organizes objectives into four perspectives: financial, customer, internal business process, and learning and growth. This framework enables businesses to translate their strategy into action and align efforts across the organization.
Highlights
Using the Balanced Scorecard as a Strategic Management System (View Highlight)
The study was motivated by a belief that existing performance-measurement approaches, primarily relying on financial accounting measures, were becoming obsolete. The study participants believed that reliance on summary financial-performance measures were hindering organizations’ abilities to create future economic value. (View Highlight)
“Balanced Scorecard,†organized around four distinct perspectives—financial, customer, internal, and innovation and learning. The name reflected the balance provided between short- and long-term objectives, between financial and nonfinancial measures, between lagging and leading indicators, and between external and internal performance perspectives. (View Highlight)