The Balanced Scorecard

 The Balanced Scorecard 

by - Nang Aye Aye Htun

What is the balanced scorecard (BSC) ?

• A balanced scorecard is a strategic management performance metric that helps companies or organizations identify and improve their internal operations to help their external outcomes. In other word, it is a management system that translates vision and mission of organization into actions.
• It measures past performance data and provides organizations with feedback on how to make better decisions in the future.
• It is developed by Professor Robert Kaplan, Harvard Business School and Dr. David Norton, a management consultant.

 Organizations use BSCs to:

• Communicate what they are trying to accomplish
• Align the day-to-day work that everyone is doing with strategy
• Prioritize projects, products, and services
• Measure and monitor progress towards strategic targets.

The four perspectives of BSC 

• Financial Perspective
• Customer Perspective
• Internal Process Perspective
• Learning and Growth Perspective

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Overall, the balanced scorecard means its balance financial and non-financial measures of the organization.