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balanced scorecard
The balanced scorecard is a management system for coordinating and improving an organization’s operations so that all activities (including their enterprise applications) are aligned with its strategy. It links performance measurements with the strategy of an organization -- including the perspectives of financial, customers, internal processes, and innovation and learning.
The balanced scorecard processes consist of:
Translating the Vision – By relying on measurement, the scorecard forces managers to come to agreement on the measurements they will utilize to operationalize their visions.
Communicating & Linking – When a scorecard is disseminated up and down the organization, strategy becomes a tool available to everyone. As the organization’s scorecard cascades down to individual business units, strategic objectives and measures are translated into business unit objectives and measures. Individual performance scorecards are then tied to the business unit strategic objectives and measures.
Business Planning – After agreeing on performance measures for the four perspectives (financial, customers, internal operations, and innovation & learning), organizations identify the most influential “drivers” of their desired outcomes and then set milestones for gauging the progress.
Feedback & Learning – By supplying a mechanism for strategic feedback and review, the scorecard helps organizations foster a kind of learning often missing.
