BALANCE SCORE CARD
Balance Score Card
The Balanced Scorecard (BSC) is a management framework developed by David Norton and Robert Kaplan in 1992. Organizations can translate their strategic objectives into tangible performance metrics, providing a balanced view of organizational performance across various perspectives.
The Balanced Scorecard has four basic perspectives
- Financial Perspective: Focuses on financial objectives and performance indicators.
- Customer Perspective: Concentrates on customer-related objectives and measures.
- Internal Business Processes: Emphasizes the processes and activities that are critical for delivering value to customers and achieving financial success.
- Learning and Growth (or Organizational Capacity): Focuses on the organization's ability to learn, innovate, and adapt to change. Encompasses employee training, skill development, knowledge management, and the overall organizational culture.
The BSC identifies key performance indicators (KPIs) for each perspective, allowing organizations to measure progress towards strategic goals.