Thursday, June 9, 2011

Balance Scorecard Framework

The balanced scorecard is a strategic planning and management system that is used extensively in business, industry and non-profit organizations worldwide to align business activities to the vision and strategy of the organization

The balanced scorecard is a management system (not only a measurement system) that enables organizations to clarify their vision and strategy and translate them into action. It provides feedback to both the internal business processes and external outcomes in order to continuously improve strategic performance and results. Balance scorecard is linking strategy and operation



Balance Scorecard framework is consist of a strategy map and four perspective of the balance scorecard.


Strategy map is a visual framework for integrating the organization’s objectives with the four perspectives of a Balanced Scorecard.
The four perspectives of balance scorecard are :

1. Financial perspective : Describes the tangible outcomes of the strategy in traditional financial terms.

2. Customer perspective : Defines the value proposition for targeted customers.

3. Internal process perspective : Identifies the critical core processes that are expected to have the greatest impact on the strategy.

4. Learning and growth perspective : Identifies the intangible assets that are most important to the strategy.

Here is some illustration of the architecture of balance scorecard



check this Balance Scorecard presentation slide

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