Balanced Scorecard

A Balanced Scorecard is a semi-standard structured reporting tool for managers to group and track the performance of an organisation, better to control its strategic direction. Drs. Robert Kaplan and David Norton found in their initial work together that too many organizations were measuring their success only from a financial point of view and that a broader, more strategic set of dimensions needed to be controlled. The four perspectives of their traditional balanced scorecard are Financial, Customer, Internal Process, and Learning and Growth. The Balanced Scorecard Institute has modified and expanded these to the “Nine Steps to Success”. “Learning and Growth” is changed to “Organizational Capacity”. Improvements here improve Internal Processes, which improve Customer and Stakeholder Satisfaction, which leads to improved financial results.