Measuring all aspects of performance with the Balanced Scorecard
The 'Balanced Scorecard' provides a methodology for translating an
organisation's mission statement and overall business strategy
into specific, quantifiable goals and to monitor the organisation's
performance in terms of achieving those goals. Too often, easily
measured financial data is used too readily to monitor performance,
whereas any business needs to keep an eye on other aspects of
performance and development.
The Balanced Scorecard methodology
examines performance in four areas:
1. Financial analysis, the most traditionally used performance
indicator, includes assessments of measures such as operating
costs and return-on-investment.
2. Customer analysis looks at customer satisfaction and retention.
3. Internal analysis looks at production and innovation, measuring
performance in terms of maximizing profit from current products
and following indicators for future productivity.
4. Learning and growth analysis explores the effectiveness of
management in terms of measures of employee satisfaction and
retention and information system performance.
Note: This web page is not intended to provide comprehensive coverage of the subject, merely a brief introduction to provoke thought and to lead to a more in depth understanding and application of the topic, either through further reading - or from me as your management consultant, executive trainer or personal coach in a consultancy project, training course, workshop or seminar.
References and Further Reading
Norton and Kaplan. The Balanced Scorecard: Translating Strategy into Action. Harvard Business Review 1996