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    What Is Balanced Score Card?

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    The balanced scorecard is a strategic performance management tool used to evaluate company performance from four perspectives: financial, customer, internal business processes, and organizational capacity. It helps managers obtain quantitative data on these perspectives to make better strategic decisions. The four perspectives are: 1) financial - ensuring return on investment and risk management, 2) customer - assessing customer satisfaction, 3) internal business processes - evaluating efficient operations and excellent products/services, and 4) organizational capacity - having proper infrastructure, technology, culture, knowledge and skills to achieve objectives.

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    What Is Balanced Score Card?

    Uploaded by

    Pari
    102 views2 pages
    The balanced scorecard is a strategic performance management tool used to evaluate company performance from four perspectives: financial, customer, internal business processes, and organizational capacity. It helps managers obtain quantitative data on these perspectives to make better strategic decisions. The four perspectives are: 1) financial - ensuring return on investment and risk management, 2) customer - assessing customer satisfaction, 3) internal business processes - evaluating efficient operations and excellent products/services, and 4) organizational capacity - having proper infrastructure, technology, culture, knowledge and skills to achieve objectives.

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    The balanced scorecard is a strategic performance management tool used to evaluate company performance from four perspectives: financial, customer, internal business processes, and organizational capacity. It helps managers obtain quantitative data on these perspectives to make better strategic decisions. The four perspectives are: 1) financial - ensuring return on investment and risk management, 2) customer - assessing customer satisfaction, 3) internal business processes - evaluating efficient operations and excellent products/services, and 4) organizational capacity - having proper infrastructure, technology, culture, knowledge and skills to achieve objectives.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    102 views2 pages

    What Is Balanced Score Card?

    Uploaded by

    Pari
    The balanced scorecard is a strategic performance management tool used to evaluate company performance from four perspectives: financial, customer, internal business processes, and organizational capacity. It helps managers obtain quantitative data on these perspectives to make better strategic decisions. The four perspectives are: 1) financial - ensuring return on investment and risk management, 2) customer - assessing customer satisfaction, 3) internal business processes - evaluating efficient operations and excellent products/services, and 4) organizational capacity - having proper infrastructure, technology, culture, knowledge and skills to achieve objectives.

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    What is Balanced Score Card?

     The balanced scorecard (BSC) is described as a strategic management performance


    indicator that is used to identify and enhance various internal company processes and
    the external outcomes that flow from them. Balanced scorecards are widely used in the
    United States, the United Kingdom, Japan, and Europe to measure and provide
    feedback to enterprises. Managers and executives must obtain and understand data in
    order to provide quantitative results. This information can be used by company
    personnel to make better decisions for the future of their businesses.

     What are the four sections of Balanced Score Card?


     The Balanced Scorecard from Four Different Perspectives:
    1. Financial
    A company's financial goal is to ensure that it generates a return on its investments while also
    managing important risks associated with running the firm. The objectives can be met through
    meeting the needs of all stakeholders in the firm, including shareholders, customers, and
    suppliers.
    2. Customer
    The customer viewpoint examines how the entity provides value to its customers and assesses
    consumer satisfaction with the company's goods and services. Customer satisfaction is a
    barometer of a business's performance. The way a business treats its consumers has a direct
    impact on its profitability. The balanced scorecard takes into account the company's reputation in
    comparison to its competitors. How do clients see your business in comparison to your
    competitors? It allows the company to venture outside of its comfort zone and see itself through
    the eyes of the client rather than only from the inside.
    3. Internal business operations
    The internal operations of a company define how well it functions. A balanced scorecard puts the
    measures and objectives that can help the firm function more efficiently into perspective. The
    scorecard also aids in evaluating the company's products or services to see if they meet the
    criteria that customers expect. Answering the question, "What are we excellent at?" is an
    important aspect of this perspective. The answer to that question can aid the organization in
    developing marketing strategies and pursuing innovations that lead to the development of new
    and better ways to meet customer wants.
    4. Organizational capacity
    Organizational capability is critical for achieving desirable aims and objectives. Personnel in the
    organization's departments are expected to perform well in terms of leadership, the entity's
    culture, knowledge application, and skill sets.
    In order for the company to meet management's objectives, proper infrastructure is essential. For
    instance, the company should adopt cutting-edge technology to automate tasks and ensure a
    seamless flow of operations.

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