Balanced Scorecard

MoneyBestPal Team
A strategic management tool that provides a comprehensive  and integrated perspective on an organization's performance.

An integrated and thorough view of an organization's performance is offered by the Balanced Scorecard, a strategic management tool. The Balanced Scorecard, created in the early 1990s by Robert Kaplan and David Norton, aims to balance financial and non-financial measurements to give a full picture of an organization's performance.

The financial, customer, internal process and learning and growth perspectives make up the Balanced Scorecard. When analyzing performance, these four viewpoints serve to guarantee that all facets of the company are taken into account and offer a fair assessment of the business's performance.

The emphasis of the financial perspective is on the conventional financial indicators of an organization's performance, such as revenue, profit, and return on investment. Measures of customer happiness, loyalty, and value are the main topics from the consumer perspective. The internal process perspective is concerned with the organization's internal operations, including quality assurance, production, and product development. The organizational capacity to learn and grow, including personnel development, innovation, and organizational culture, is the focus of the learning and growth approach.

The four viewpoints are then divided into precise metrics and goals, which aid in giving a more in-depth picture of the organization's performance. The organization's success over time and potential areas for improvement are assessed using these measures and targets.

A framework for matching a company's plans and goals with its operations and procedures is provided by the balanced scorecard. Organizations can use it to track their progress toward these goals and to share their strategy and objectives with all relevant parties.