balanced scorecard

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Balanced Scorecard

A type of internal audit. A balanced scorecard collects data and reports to management on four areas: learning and growth, business processes, customers, and finance. The balanced scorecard helps an organization monitor performance and, if necessary, make improvements.

balanced scorecard

a tool for setting and communicating corporate goals and for measuring corporate performance. The balanced scorecard incorporates four groups of goals and derived performance indicators: External Indicators (financial goals and measures); (customer goals and measures); Internal Indicators (internal business process goals and measures); (learning and growth goals and measures).

The balanced scorecard approach balances traditional financial measures such as net profit and return on capital with customer measures such as market share and customer satisfaction; business process measures such as productivity and stock turnover; and learning and growth goals such as employee turnover and training. Balanced scorecards provide a broader set of performance measures and related management systems for judging overall performance, than financial targets alone. See BUSINESS STRATEGY.

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DEWA was the first organisation in the Middle East and North Africa to be inducted into the Strategy Hall of Fame, for implementing the Balanced Scorecard and adherence to the five principles of the Strategy-Focused Organisation, developed by Kaplan and Norton, creators of the Balanced Scorecard.
Performance management, and in particular the version of it known as balanced scorecard (BSC), has become a topic of considerable interest in both the business world and in academia [7].
Balanced scorecard is one of the commonly used in measurement methods.
In the early 1990s, when Robert Kaplan and David Norton introduced the concept of the "balanced scorecard," companies measured their performance primarily using financial metrics.
To align management behavior with corporate strategy, the balanced scorecard is widely used by companies in the US and abroad (Kaplan and Norton, 1992, 1996; Silk, 1998).
A criticism of Balanced Scorecards is that the scores are not based on any proven economic or financial theory, and therefore have no basis in the decision sciences.
You can't successfully implement a balanced scorecard (BSC) in an organization that doesn't have a well-aligned management system.
The balanced scorecard (BSC) has become a standard topic in management accounting textbooks and journals in recent years as companies seek new ways to maintain a viable position in the marketplace.
JofA: Could you give a summary of how you've come to work with activity-based costing and balanced scorecards?
Strategy maps and balanced scorecards illustrate and visually communicate the linkage between overall corporate strategy and divisional or strategic business unit strategies and initiatives.
Balanced scorecards can be expected to reflect contingency factors unique to departments, programs, and institutions.

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