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Balanced Scorecard

The balanced scorecard is a management system that allows organizations to define their vision and strategy and translate them into action through continuous improvement. It provides feedback on internal business processes and external outcomes from four perspectives: learning and growth, business processes, customers, and financial data. Metrics are developed based on strategic priorities and processes collect relevant information to guide decision making, track results over time, and identify areas for improvement.

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Hhrman Hhuraa
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21 views

Balanced Scorecard

The balanced scorecard is a management system that allows organizations to define their vision and strategy and translate them into action through continuous improvement. It provides feedback on internal business processes and external outcomes from four perspectives: learning and growth, business processes, customers, and financial data. Metrics are developed based on strategic priorities and processes collect relevant information to guide decision making, track results over time, and identify areas for improvement.

Uploaded by

Hhrman Hhuraa
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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The balanced scorecard

The balanced scorecard is a management system that enables organizations to


clarify their vision and strategy and translate them into action. It provides feedback
around both the internal business processes and external outcomes in order to
continuously improve strategic performance and results.

The balanced scorecard suggests that the organisation is viewed from four
perspectives:

1. The learning and growth perspective: This perspective includes employee


training and corporate cultural attitudes related to both individual and
corporate self-improvement. Metrics can be put into place to guide managers
in focusing training funds where they can help the most.

2. The business process perspective: This perspective refers to internal


business processes. Metrics based on this perspective allow the managers to
know how well their business is running, and whether its products and
services conform to customer requirements

3. The customer perspective: In developing metrics for satisfaction, customers


should be analyzed in terms of kinds of customers and the kinds of processes
for which we are providing a product or service to those customer groups.

4. The financial perspective: this includes financial-related data, such as risk


assessment and cost-benefit data

Under the balanced scorecard system, metrics are developed based on the priorities
of the strategic plan. Processes are then designed to collect information relevant to
these metrics. Decision makers examine the outcomes of various measured
processes and strategies and track the results to guide the organisation and provide
feedback. Metrics are tracked continuously over time to look for trends, best and
worst practices, and areas for improvement. It is typically used to assist with mid
term planning (2-5 years).

Further information can be found at http://ww.balancedscorecard.org

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