BALANCED SCORE CARD

WHAT IS A BALANCED SCORECARD

A tool used by managers to keep track of the execution of activities by the staff
under their control.
A hybrid framework that adds non-financial & financial performance measures
to give the managers a balanced view of the organizational performance.
Developed by Dr. Robert Kaplan & Dr. David Norton.
It helps the companies to align their business activities to their vision and
strategies.
It is extensively used in business, industry, government, and non-profit
organizations.
PERSPECTIVES AND FEATURES OF A BALANCED SCORECARD
4 key perspectives are taken into consideration while preparing a balanced scored
card:
1) Financial: "How do we look to shareholders?
2) Customer: "How do customers see us?
3) Internal Business Processes: "What must we excel at?
4) Learning and Growth: "Can we continue to improve and create value?".

The major features of a BSC are

1) Objectives 2) Measures 3) Targets 4)initiatives
Balance Scorecard for a Fast-Food
restaurant
Mission-Level Perspective
To sell the most burgers to be measured with the number of burgers
sold.
Customer Perspective
Providing Great Service which can be measured with the Excellent
results on a customer survey.
I nternal Process Perspective
Quick food delivery to be measured with the amount of time from order
to delivery.
I nternal Learning & Growth Perspective
Training employees to be measured with the number of employees
attending and passing training classes.