Balanced Scorecard

What are the 4 different perspectives of a balanced scorecard?

Four perspectives of a balanced scorecard are:
1. Financial,
2. Customer,
3. Internal business processes, and
4. Learning and growth.

What does a balanced scorecard mean?

A balanced scorecard is a management technique designed to bring together different viewpoints on an organization’s performance. It provides information that can help improve decision-making and move the organization toward its strategic objectives.

What is a balanced scorecard in Human Resources Management?

The balanced scorecard is a strategic approach to measure the effectiveness of HR management. It evaluates the non-financial performance measurements alongside the traditional financial metrics. A balanced scorecard is a strategic procedure for aligning organizational resources, processes, and results. The balanced scorecard specifically refers to strategy alignment at the enterprise level.

What are the benefits of balanced scorecards?

Here are some additional benefits of a balanced scorecard:
1. Communicates all key elements of strategy to top management and employees.
2. Helps in decision-making processes.
3. Provides a common language, framework, and process to evaluate performance.
4. Helps you to improve customer relationships.
5. It gives you a way to predict your future performance based on trends identified in past performance data.

What is the difference between a balanced scorecard (BSC) and a key performance indicator (KPI)?

Balanced scorecard:

• A BSC is a performance measurement tool that provides a 360-degree view of an organization. A BSC is usually composed of four perspectives—financial, customer, internal processes, and learning and growth.
• key performance indicator (KPI):

A key performance indicator (KPI) is similar to a BSC but is not as comprehensive. KPIs measure specific aspects of an organization’s activities, while BSCs focus on several elements at once. In other words, KPIs are one aspect of BSCs.

How is a balanced scorecard implemented?

Implementing the Balanced Scorecard is not an easy task because it involves the participation of all employees and the continuous development of all aspects of an organization. The Balanced Scorecard is most beneficial when used as a tool for evaluation, planning, and communication.