| The balanced scorecard
is a measurement-based strategic management system, originated
by Robert Kaplan and David Norton. The balanced scorecard provides
a method of aligning business activities to strategy,
and monitoring the performance of strategic initiatives over time.
It provides feedback around both business processes and their
outcomes in order to continuously improve performance results.
A balanced scorecard views the organization from the following
four perspectives, and requires the analysis of metrics relative
to each of these perspectives:
|
- The Financial Perspective
- The Customer Perspective
- The Business Process Perspective
- The Learning and Growth Perspective
When fully deployed, the balanced scorecard transforms strategic
planning from an academic exercise into the nerve center of an
enterprise. The balanced scorecard methodology builds on some
key concepts of previous management ideas such as Total
Quality Management (TQM), including customer-defined quality,
continuous improvement, employee empowerment, and -- primarily
-- measurement-based management and feedback. |
