The BSC monitors the organization performance against the strategic goals and measures the execution of the strategy. This is achieved through defining goals, attaching relevant performance measures including target values, the definition of initiatives and the integration into the target agreement and planning.
With the help of the BSC it is possible to have a consolidated view of all crucial perspectives that are needed for the achievement of the strategic goals. This performance management approach provides feedback about both the internal processes and the external outcomes.1)
Usually, the BSC suggests the view on an organization through four perspectives: 3 non-financial topics and one financial topic.2)
These perspectives provide relevant feedback on how well the strategic plan of a company is executed. Every perspective has its own metrics, data and Key Performance Indicators (KPIs) which need to be developed, collected and analyzed.
The 4 perspectives are:
The following KPIs are only examples 3) - each company can decide which KPIs to choose.
Internal Business Process perspective
Learning and growth perspective
The concept of the Balanced Scorecard (BSC) originates from a research project at the Harvard Business School (headed by R. S. Kaplan and D. P. Norton) implemented at the beginning of the 1990s. The objective was to develop an innovative performance measurement that went beyond monetary performance components. It supplies only a conceptual framework that can be structured around the specific company and can thus be applied universally.4)
Martina Mattes 2011/04/28 16:17