balanced scorecard

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balanced scorecard

A document that translates an organisation’s mission and strategy into a comprehensive set of performance measures which provide the framework for a strategic measurement and management system. The balanced scorecard retains an emphasis on achieving financial objectives, but also includes the performance drivers of those financial objectives. The scorecard measures organisational performance across four balanced perspectives:
(1) Financial (i.e. cost efficiency)
(2) Customers
(3) Internal business processes
(4) Learning and growth (i.e. making changes and sustaining improvements).
References in periodicals archive ?
Balanced scorecards first appeared on the management scene in a 1992 Harvard Business Review article "The Balanced Scorecard--Measures That Drive Performance.
Balanced Scorecards earn their name because they "balance", or "integrate", the critical goals of an organization in many different areas into one simple, visually-based performance reporting mechanism.
Rarely do balanced scorecards succeed when the chief executives and their teams withdraw their support before completion of the initial rollout, or play only a token role in the process (Kaplan and Norton, 1996).
Balanced scorecards combine financial with nonfinancial measures, such as customer satisfaction, operational levels--quantity and quality produced--and employee-polled managerial evaluations.
Fortis and Principal Financial Group are examples of two companies that have used Balanced Scorecards to communicate executive-level strategy to the workforce and to analyze performance based on a variety of measures for different departments.
Since then he has implemented over 100 Balanced Scorecards in over 20 industries across 10 countries on three continents.
2003) A Descriptive Analysis On The Implementation Of Balanced Scorecards in German-Speaking Countries, Management Accounting Research,No:14, p.
This allowed individuals to make a direct link to their college's model when reading literature about and reviewing external examples of Balanced Scorecards.
Balanced scorecards measure an organization's progress toward achieving strategic goals, while ERM helps company leaders think through positive and negative factors that can affect the achievement of their goals.