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3-The Balanced Scorecard
3-The Balanced Scorecard
Strategy : is about an organization making choices about what it will do and., equally
important, about what it will not do
Performance measures need to show different dimensions if performance, in line with the
organization’s strategy.
Organization’s success increasingly depend on their intangible assets.
The BSC links performance measures to the strategy. It is a tool of clarifying, communication
(internally and externally) and steering the strategy.
The 4 perspectives
Organizations’ performance can be divided into 4 perspectives :
Performance measurement
Examples
Cause-and-effect relationships
• The BSC assumes cause-and-effect relationship btw the obj and each perspective
• Each obj is an element from a chain of cause-and-effect that shows how the strategy
should be achieved
• These cause-and-effect relationship are shown in a Strategy Map
- The strategy map helps to visualize and communicate how value is created by
the organization
- It allows to identify inconsistencies in the strategy
IV – CONCLUSION