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)

The development process requires managers to:

  • Understand and establish a coherent vision and strategy for the business. 
  • Understand which performance category would best suit the organization’s vision. 
  • Establish objectives best-suited to the organization’s end goal.
  • Develop effective measures and standards, to quantitatively evaluate the organization’s performance. 
  • Check-in with the organization to make sure everyone is on board when it comes to feasible measures and standards. 
  • Introduce budgeting, tracking, communication, and appraisal systems. 
  • Compare actual results with desired levels of performance. 
  • Close unwanted gaps.

    Etiam magna arcu, ullamcorper ut pulvinar et, ornare sit amet ligula. Aliquam vitae bibendum lorem. Cras id dui lectus. Pellentesque nec felis tristique urna lacinia sollicitudin ac ac ex. Maecenas mattis faucibus condimentum. Curabitur imperdiet felis at est posuere bibendum. Sed quis nulla tellus.


    63739 street lorem ipsum City, Country


    +12 (0) 345 678 9