What is a the Balanced Scorecard?

Our Glossary defines it as “a method for monitoring whether a company is meeting or will meet its strategic objectives. Key Performance Indicators (both lagging and leading) are broken into 4 areas of focus: Financial, Customers, Operational and People. These indicators are monitored on a regular basis and organized as a Scorecard for determining current company status.”

Wikipedia says:

The Balanced Scorecard (BSC) is a performance management tool which began as a concept for measuring whether the smaller-scale operational activities of a company are aligned with its larger-scale objectives in terms of vision and strategy.

Read out in-depth article on the Balanced Scorecard:

Performance Measurements for Success

Traditional financial measures – ROI, net profit, sales growth, and market share – fail to capture the true picture of a firm’s value propositions because they focus on the past. They tell the story of what has happened to the organization. They explain the results of past transactions and disregard what the future benefits could be. Traditional financial measures are only part of the information that managers need to successfully guide their organizations through highly competitive marketplaces… read more

Below, we have much more links on the subject as well