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. Financial

Financial objectives such as revenue targets and return-on-investment.

2. Customer

Customer related targets such as customer retention, loyalty and customer satisfaction.

3. Internal

The 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 & Growth

The corporate culture of an organization such as employee engagement and development.

Goal Structure

Each goal is broken down into a structure with a vision statement, strategies, tactics and metrics.

Goals

This is the complete list of articles we have written about goals.

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