fbpx

Speed Commerce

What Is a Balanced Scorecard?

Contact Center Glossary > Balanced Scorecard

Balanced Scorecard Definition | TLDR

A balanced scorecard is a strategic performance management tool used to measure and manage an organization's performance across multiple perspectives, such as financial, customer, internal processes, and learning and growth.

Balanced Scorecard Meaning

A Balanced Scorecard is a strategic management tool used by organizations to align business activities with their vision and strategy. It provides a comprehensive framework that allows companies to measure and monitor performance across multiple perspectives, beyond just financial indicators. The concept was first introduced by Robert S. Kaplan and David P. Norton in the early 1990s as a response to the limitations of relying solely on financial metrics to gauge success.

How Does the Balanced Scorecard Framework Contribute to Strategic Management, and What Key Perspectives Does It Incorporate to Evaluate Organizational Performance?

Let's Get Started!

A fulfillment expert will get back to you within 1-2 business days.

What We Do

Our Solutions

Speed Commerce is a leader in eCommerce services for retailers and manufacturers. We provide outsourced services for our clients. To learn more, watch this short video. 

A Balanced Scorecard is a strategic management tool used by organizations to align business activities with their vision and strategy. It provides a comprehensive framework that allows companies to measure and monitor performance across multiple perspectives, beyond just financial indicators. The concept was first introduced by Robert S. Kaplan and David P. Norton in the early 1990s as a response to the limitations of relying solely on financial metrics to gauge success.

By incorporating a variety of metrics from these perspectives, the Balanced Scorecard provides a more holistic view of organizational performance and helps managers make more informed decisions. It promotes balance between short-term and long-term goals, as well as between financial and non-financial objectives. Moreover, the Balanced Scorecard serves as a communication tool, enabling different levels of the organization to understand and contribute to the overall strategy. Overall, it's a powerful framework that enables companies to translate their vision into actionable goals and measure progress in a comprehensive manner.

FAQs

No, the Balanced Scorecard goes beyond financial metrics. While it includes financial indicators, it also incorporates non-financial measures, such as customer satisfaction, internal business processes, and learning and growth aspects to provide a more comprehensive view of organizational performance.

No, the Balanced Scorecard is a strategic management tool that can be utilized by organizations of various sizes, including small and medium-sized enterprises (SMEs). It is adaptable to the specific needs and goals of different types of organizations, not limited to large corporations.

Yes, the Balanced Scorecard requires continuous monitoring and adjustment. It is a dynamic management system that should be regularly reviewed to ensure alignment with changing organizational priorities and external conditions. Regular updates and revisions are essential for its effectiveness in guiding strategic decisions.

Get Started Today!

REQUEST A QUOTE

Once your request is submitted, a fulfillment expert will get back to you within 1-2 business days.

Let's Get Started

A fulfillment expert will get back to you within 1-2 business days.