balanced scorecard

The balanced scorecard (Kaplan and Norton) is a performance management system that enables organisations to implement a business vision and strategy.

The measurement focus of the scorecard forms the basis of a strategic management system enabling the organisation to:

  • clarify and translate vision and strategy

  • communicate and link strategic objectives and measures

  • plan, set targets, and align strategic initiatives

  • enhance strategic feedback and learning

balanced scorecard

This is achieved by considering four perspectives:

  • financial

  • customer

  • internal process

  • learning and growth

These perspectives give an organisation balance between internal and external measures, and balance between outcomes – results from past efforts – and measures that drive future performance.

Financial Perspective

The financial perspective retains the need for traditional financial data.  However it recognises that the programmes, initiatives and change management processes drive the need for measures that reflect the intangible assets of an organisation.

Customer Perspective

Recent management philosophy has acknowledged the importance of the customer perspective as an indicator of future performance. In developing metrics for customer satisfaction, customers should be benchmarked against value propositions which reflect product and service attributes, image or brand and relationships.

Internal Perspective

The internal business perspective focuses the organisation on the processes that are most critical for achieving customer and financial objectives. The focus is on mission-oriented processes as opposed to support processes, and targets and initiatives which use resources to best effect.

Learning and Growth

Learning and growth relates to individuals and information, but perhaps most importantly to the organisation as a whole. Culture, leadership and teamwork, and the alignment and readiness of an organisation to meet strategic objectives, leads to successful outcomes.

Strategy Maps are used in conjunction with the balanced scorecard to help identify the key internal processes and communicate strategy.

call now: 023 9224 0243