An Introduction to The Balanced Scorecard
The Balanced Scorecard, known as the BSC, is a management system intended to help organizations clarify strategy and develop metrics to improve financial perspective.
BSC encourages us to view the business from four perspectives: The Learning and Growth Perspective; The Business Process Perspective; The Customer Perspective; The Financial Perspective. Within this, metrics are developed to reflect the business objectives.
Within each perspective, four aspects are assessed: objectives, measures, targets and initiatives. Outcome metrics are based upon: strategic feedback; diagnostic feedback with respect to the processes; chronological trends with respect to the metrics; feedback with respect to the measurement methods themselves; quantitative inputs to forecasting models (for decision support systems).