What is Balanced Scorecard ?
Originally developed by Dr Robert Kaplan and Dr David Norton in 1992, a ‘Balanced Scorecard’ or BSC is a framework used to provide metrics for understanding the following KRA: shareholder happiness, customer happiness, internal process strengths and growth of the company.
This is achieved by linking the abstract vision and mission of the company with strategic objectives, well-defined tangible goals, targets and initiatives. It helps the company realize its goals and objectives which helps in garnering the trust of the shareholders and customers. Defining tangible goals which also help in streamlining the goals to achieve growth and eventual success for the company.
In this sense, a ‘Balanced Scorecard’ becomes a performance management framework for the company helping in the implementation of both financial and non-financial measures to achieve its targets.