Management Fix
A balanced scorecard is a strategic management performance metric used to identify and improve various internal business functions and their resulting external outcomes. (1)
The use of the balanced scorecard brings the company a disciplined framework that gives organizations a way to “connect the dots” between the various components of strategic planning and management, meaning that there will be a visible connection between the projects and programs that people are working on, the measurements being used to track success (KPIs), the strategic objectives the organization is trying to accomplish, and the mission, vision, and strategy of the organization. (2)
The balanced scorecard is a set of financial and non-financial measures regarding a company’s success factors from four interrelated perspectives: financial, customer, internal business processes, and learning and growth. Together, these four perspectives reflect the essence of the organization’s value-creating activities. (3)
The Balanced Scorecard Links Performance Measures
- How do customers see us? (customer perspective)
- What must we excel at? (internal perspective)
- Can we continue to improve and create value? (innovation and learning perspective)
- How do we look to shareholders? (financial perspective)
