Definition
A balanced scorecard is a strategic planning and management tool. Its purpose is to calculate organizational performance beyond the traditional financial measures. It is outcome-focused and provides a balanced view of an enterprise by implementing the strategic plan as an active framework of objectives and performance measures.
The underlying premise of the balanced scorecard is that the drivers of value creation are understood, measured, and optimized in order to create sustainable performance.
The balanced scorecard includes tangible objectives, specific measures, and targeted outcomes derived from an organization’s vision and strategy.
Balanced business scorecards can be used at multiple levels within an organization such as enterprise-wide level (macro level), departmental or function level, and even at the level of a project or initiative. They also can be used for short, medium, and long-term goals.
Balanced Scorecards should not be used as the single tool for strategic planning. It is one tool to be used in a suite of strategic planning tools.
Why use a Balanced Scorecard?
This matrix is also particularly helpful for complex initiatives that require knowing who must be able to decide what to do during each step.
Facilitates holistic and balanced planning and thinking.
Harmonizes short, medium, and long-term goals into programs with incremental success measures.
Helps strategic, tactical, and operational teams aligning in their work.
Encourages forward thinking and competitiveness.
Balanced scorecard Elements
How to build a Balanced Scorecard
How to use a Balanced Scorecard
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On top of the brief description of the method, access to:
- an explanation of when and how to use it,
- a practical example,
- tips and recommendations for use,
- downloadable checklists and templates,
- references for further reading,
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