Balanced Scorecard Brief

Here the word “score” is saying that we are going to give score and also we have to balance the score of aspects given.

 

It’s business performance measurement tool. It measures both financial as well as non-financial performance.

 

Managers should appraise performance from four perspectives:
Perspective

Focus

Financial

Financial Performance

Customer

Customer Satisfaction

Internal Process

Business efficiency

Innovation

Improvement and Development

Managers who have increased financial results will not be awarded if the success has been achieved by cutting back on staff training or cutting back on research and development.

 

To assess the performance of each perspective, we have to attribute KPIs.