BPM 2
What is a Balance Scorecard?
Developed by (Robert) Kaplan & (David) Norton: ‘Are the originators of the Balanced Score
Card: a strategic management tool that links a company's current actions with its long-term
goals”.
Popular business tool which aligns different dimensions of business strategy
Creates a strong link between financial goals and other parts of the company strategy
Developed to include ‘metrics’ to check that company objectives are being met
What is the goal of the BSC? To measure and provide feedback to organization
Advantages of the Balance Scorecard
Broader view of business performance
Links performance measurements to long-term (mission & vision)
Involves everyone in the business
Highly flexible
Drawbacks of the Balanced Scorecard
Danger of too many KPIs
Need to have balance between the four perspectives
Senior management may still be too concerned with financial performance
Needs to be updated regularly to be useful
,
What is a Balance Scorecard?
Developed by (Robert) Kaplan & (David) Norton: ‘Are the originators of the Balanced Score
Card: a strategic management tool that links a company's current actions with its long-term
goals”.
Popular business tool which aligns different dimensions of business strategy
Creates a strong link between financial goals and other parts of the company strategy
Developed to include ‘metrics’ to check that company objectives are being met
What is the goal of the BSC? To measure and provide feedback to organization
Advantages of the Balance Scorecard
Broader view of business performance
Links performance measurements to long-term (mission & vision)
Involves everyone in the business
Highly flexible
Drawbacks of the Balanced Scorecard
Danger of too many KPIs
Need to have balance between the four perspectives
Senior management may still be too concerned with financial performance
Needs to be updated regularly to be useful
,
