Saturday, June 6, 2009

What is Balanced Scorecard?

The Balanced Scorecard (BSC) is a state-of-the-art performance management tool for measuring whether the operational activities of a profit- or non-profit organization are aligned with its sets of objectives in terms of vision and mission.

BSC focuses not only on financial outcomes but also effectiveness and efficiency on operational, marketing and developmental inputs.

In other words, BSC provides a more dimenstional view of a business. Instead of just measuring financial outputs, factors influencing the prior are at least productivity efficacy, market share development, order delivery efficiency, skills development, internal promotion etc.

BSC is generally categorized into four general perspectives to oversee the 360 degrees of a business:-

1. Financial perspective
2. Customer perspective
3. Internal process perspective
4. Innovation and learning perspective

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