Balanced Scorecard
October 3, 2006 by Bruno Silva
Filed under Teoria
in Wikipedia
In 1992, Robert S. Kaplan and David Norton introduced the balanced scorecard (BSC), a concept for measuring a company’s activities in terms of its vision and strategies. It gives managers a comprehensive view of the performance of a business.
It is a strategic management system that forces managers to focus on the important performance metrics that drive success. It balances a financial perspective with customer, internal process, and learning & growth perspectives. The system consists of four processes: 1. Translating the vision into operational goals; 2. Communicate the vision and link it to individual performance; 3. Business planning; 4. Feedback and learning and adjusting the strategy accordingly.
The scorecard seeks to measure a business from the following perspectives:
-Financial perspective - measures reflecting financial performance, for example number of debtors, cash flow or return on investment. The financial performance of an organization is fundamental to its success. Even non-profit organizations must make the books balance. Financial figures suffer from two major drawbacks:
They are historical. Whilst they tell us what has happened to the organization they may not tell us what is currently happening, or be a good indicator of future performance.
It is common for the current market value of an organization to exceed the market value of its assets. Tobin’s-q measures the ratio of the value of a company’s assets to its market value. The excess value can be thought of as intangible assets. These figures are not measured by normal financial reporting.
- Customer perspective - measures having a direct impact on customers, for example time taken to process a phone call, results of customer surveys, number of complaints or competitive rankings.
- Business process perspective - measures reflecting the performance of key business processes, for example the time spent prospecting, number of units that required rework or process cost.
- Learning and growth perspective - measures describing the company’s learning curve — for example, number of employee suggestions or total hours spent on staff training.
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