balanced scorecard

(redirected from Balanced Scorecards)
Also found in: Medical.

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.

Mentioned in ?
References in periodicals archive ?
In a four-day working session facilitated by a balanced scorecard consultant, the task force approved a scorecard with 17 core objectives and 22 tracking measures.
If you go on the Internet, you'll see an incredibly complex series of guidelines for implementing Balanced Scorecards, along with consultants who will offer to guide you through this thicket of instructions for tens of thousands of dollars.
In a survey of the use of balanced scorecards in Canadian hospitals, it was found that hospital executives believed that while financial performance measures were important, they needed to be supplemented by non-financial measures -- particularly relating to customer-related measures such as patient satisfaction (Chan and Ho, 1999).
But with an understanding of the changing ways of business, more companies are now using the balanced scorecard approach to calculate employee bonuses.
Executives can also use Balanced Scorecards to develop more accurate and compelling CEO reports.
Balanced scorecard is one of the commonly used in measurement methods.
Based on our experience in developing Balanced Scorecards for higher education institutions, we offer the following advice to those looking to do the same at their own colleges or universities:
Thus, balanced scorecards are designed to take a holistic view of the enterprise across multiple perspectives, capturing information about performance to ensure that individuals implement responses consistent with the overall strategic mission.

Full browser ?