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Balanced Scorecard
An organization's measurement system directly affects the behavior and performance of managers and employees.From the need to break up with traditional measurement systems, the BSC was born, a business framework that makes reference to a strategic management performance metric used to identify and improve business functions and their results.
This framework is used for the implementation, monitoring and management of an organization's strategy, indicating whether or not the goals are being achieved.
This data collection is essential to provide quantitative results and help staff make better decisions for the future, as it balances financial measures with performance measures and related objectives.
According to the philosophy of Kaplan and Norton it is structured in 4 perspectives:
- Financial. How do we see ourselves in the eyes of shareholders?
- Customer. How do customers see us?
- Internal. What should we excel at?
- Innovation/learning. Can we continue to improve and create value?
The Balanced ScoreCard: Translating Strategy into Action, Harvard Business School Press, Boston, 1996
