What is the Balanced Scorecard?
The Balanced Scorecard (BSC) is a strategic performance management framework that tracks objectives and measures across four perspectives. A strategy map links them: people and systems improve processes, which delight customers, which drive financial results.
The four perspectives
- Financial — how do we look to owners? (revenue growth, margin, cash)
- Customer — how do customers see us? (satisfaction, retention, share)
- Internal process — what must we excel at? (quality, speed, cost)
- Learning & growth — how do we keep improving? (skills, systems, culture)
Balanced Scorecard example
| Perspective | Objective | Measure | Target |
|---|---|---|---|
| Financial | Grow profitably | Gross margin | 32% |
| Customer | Be the reliable choice | Retention rate | 90% |
| Process | Deliver on time | On-time delivery | 97% |
| Learning | Skilled teams | Staff trained / quarter | 100% |
Common mistakes to avoid
- Too many measures in each perspective.
- Measures not linked to strategy.
- Updating the scorecard once a year.
How DOOfy helps
A scorecard is only useful if it is current. AIMOS One brings financial, customer, process and people data into one live view, so each perspective of the Balanced Scorecard updates as the business runs.
Frequently asked questions
Who created the Balanced Scorecard?
Robert Kaplan and David Norton introduced it in the Harvard Business Review in 1992.
What is a strategy map?
A one-page diagram showing cause-and-effect links between objectives across the four perspectives.