“Balanced Scorecard”

Balanced Scorecard (BSC) Meaning

The Balanced Scorecard (BSC) is a strategic management system that uses the methodology of a balanced mix of objectives, measures, initiatives, and targets to track performance management. It is a strategic performance measurement tool that helps organizations to analyze their performance and progress against the goals they have set. It captures both financial and non-financial measurements – such as customer satisfaction and employee development – with the aim to help measure and achieve organizational success.

Purpose of the Balanced Scorecard Framework

The main purpose of the Balanced Scorecard is to enable strategic planning and management, making sure that all the activities are aimed at achieving the objectives that the organization has set. It is an effective way to unify and organize all of an organization’s activities in pursuit of its long-term objectives. It helps to identify, track and prioritize the key performance indicators that reflect the strategic goals set by an organization.

What is the Objective of Balanced Scorecard BSC?

The objective of Balanced Scorecard BSC is to help an organization achieve its long-term goals by providing an integrated view of operational, financial and strategic performance, allowing the organization to be aware of how the ongoing performance contributes towards the achievement of the overall strategic objectives. It allows an organization to identify the key areas that need focus for improvement and action in order to achieve success.

FAQ

How does the Balanced Scorecard enhance strategic management and decision-making?

The balanced scorecard framework provides a comprehensive and integrated view of an organization’s strategic objectives, operational performance, and financial results. It provides a unified platform to track and measure performance, enabling better strategic management and decision-making. It is often used as a tool for strategy execution, identifying the measures and goals that need to be taken to help the organization in achieving its overall objectives.

What are the benefits of a balanced scorecard?

The balanced scorecard provides several benefits for an organization, including:

• Visibility: It provides an integrated view of organizational performance that can easily be communicated to all stakeholders.
• Strategic alignment: It helps align activities at different levels of the organization to strategic objectives.
• Clear goals: It helps establish measurable and achievable goals across a variety of areas of operations.
• Granularity: It delivers insights at multiple levels, allowing an organization to accurately track performance.