BALANCED SCORECARD

Prof.A.Christopher
Definition
 Management and measurement
system for organizations

 To help clarify company’s strategies

and vision

 Translate them into action

Who’s idea and why?

Robert Kaplan and David Norton

Function
 Provides feedback between internal
processes and external outcomes

 Transforms strategic planning

The Four Perspectives
 Financial – operating income, return
on capital employed and economic
value added

 Customer – customer satisfaction,

customer retention and market share
 Business process – cost, throughput
and quality

 Learning and growth – employee

satisfaction, employee retention, skill
sets etc.
The OMTI

 Objectives – major objectives

 Measures – parameters used for

measuring progress towards
reaching objective
 Target – specific target value for the
measures

 Initiative – Action plans to be

initiated
Adopters of BSC
 BMW financial services
 Daimler Chrysler
 Caterpillar
 IBM
 Pfizer