Balanced Scorecard
4 perspectives of the Balanced Scorecard
The Balanced Scorecard technique of Kaplan and Norton is a planned approach, and performance management system, that facilitates organizations to transform a company's vision and strategy into execution, working from 4 perspectives:
1. Financial perspective.
2. Business process perspective.
3. Learning and growth perspective.
4. Customer perspective.
Advantages of the Balanced Scorecard
Kaplan and Norton state the subsequent benefits of the usage of the Balanced Scorecard:
• Maintain the focus of the whole organization on the few important things that are required to create breakthrough performance.
• It helps to combine several corporate programs. Like: re-engineering, quality, and customer service initiatives.
• Breaking down strategic actions towards lower levels, so that operators, unit managers, and employees can see what's necessary at their level to attain excellent overall performance.