What is a Balanced Scorecard?
The origins of the Balanced Scorecard can be traced back to 1992 when Robert S. Kaplan and David Norton introduced a method for measuring a company's performance
The Balanced Scorecard is a management system that allows managers to focus on important success factors of their particular business.
It combines financial, customer, internal process and
learning and growth perspectives.
To create a Balanced Scorecard follow these three steps;
1. Translate your vision into operational goals
2. Communicate your vision and link it to performance
3. Review, feedback and adjust the strategy
A typical Balanced Scorecard will measure:
Financial Performance
Example: Number of debtors, cash flow or return on investment
Customer Perspective
Example: Time taken to process a phone call, results of customer
surveys, number of complaints
Business process perspective
Example: Key business processes
Learning & Growth perspective
Example: Hours spent on staff training etc.
