Balanced Scorecard

A Balanced Scorecard defines an organization’s performance and measures how well and how accurately it achieves its desired results. This management tool accompanies Mission and Vision Statements well, as it translates them into more solid objectives and goals that can be quantified, measured, and evaluated. There are five main categories of performance that are measured:

1. Financial performance (revenues, earnings, return on capital, cash flow)
2. Customer value performance (market share, customer satisfaction measures, customer loyalty)
3. Internal business process performance (productivity rates, quality measures, timeliness)
4. Innovation performance (percentage of revenue from new products, employee suggestions, rate of improvement index)
5. Employee performance (morale, knowledge, turnover, use of best-demonstrated practices)