What is a Balanced Scorecard?
John Spacey, updated on March 20, 2021
Balanced scorecard is a methodology for goal setting and performance management. As with most goal setting frameworks it begins with the strategy of an organization and maps that to the goals of management and every team and individual contributor. Each scorecard is designed to have a small number of measurable goals or data items. In many cases, a scorecard has about 20 items. Scorecards are also designed to be well-rounded with goals that fall into each of the following four areas:
1. FinancialFinancial objectives such as revenue targets and return-on-investment.
2. CustomerCustomer related targets such as customer retention, loyalty and customer satisfaction.
3. InternalThe capabilities of the organization such as quality, risk management, efficiency and innovation. These form the basis for a company's current and future competitive advantage.
4. Learning & GrowthThe corporate culture of an organization such as employee engagement and development.
Goal StructureEach goal is broken down into a structure with a vision statement, strategies, tactics and metrics.
GoalsThis is the complete list of articles we have written about goals.
If you enjoyed this page, please consider bookmarking Simplicable.
TrendingThe most popular articles on Simplicable in the past day. Recent posts or updates on Simplicable. Site Map