The balanced scorecard is a strategic management system used by non-profit organizations, businesses, governments and industrial corporations from all over the globe to align their business activities to the overall strategy and vision of their organizations. We all know that business success, whether public or private, is ultimately down to performance. Hence, managing and measuring that performance is vital for any organization that wants to thrive in its niche or industry. This is where the balance scorecard comes in, making sure each business is described from an organizational performance standpoint.
A Lesson of History
This groundbreaking system was developed more than two decades ago, in the beginning of the 1990s, by two famous and eminent doctors from the Harvard Business Scholl – David Norton and Robert Kaplan. In the following years, this concept was greatly improved, becoming much more than a simple measuring tool. In addition to measuring the strategic and financial goals of an organization, the Balanced Scorecard has been perfected to become a complete management system which enables organizations to clarify their strategy and vision in order to become successful.
Balanced Scorecard Explained – The Four Legs
This management system enables your business to set. trace and ultimately achieve your objectives and strategies. After you develop your business strategies and goals, they can be set and tracked using the Four Legs of the Balanced Scorecard. Each leg deals with a distinct business perspective. These legs are the Financial one, the Internal Business Process Leg, the Customer Leg and the Education, Knowledge & Growth Leg. Today’s managers and business executives may use these legs to plan, implement and reach all of their business strategies, regardless of the level of difficulty or complexity.