The Balanced Scorecard is a Term describing the strategic planning and management Practice to monitor the implementation and execution of the strategy by means of a set of agreed metrics for agreed perspectives.
Balanced Scorecard example
Balanced refers to implementing diversity in metrics that prevent the risk of implementing a single-perspective strategy. Generally accepted perspectives required in a Balanced Scorecard
- Financial Performance (FI)
- Operational Excellence (OP)
- Customer Satisfaction (CU)
- Learning and Growth (LG)
First Generation View
These perspectives (called Attributes in OpenReference) are a first generation view of the Balanced Scorecard. Each perspective is measured by one or more Metrics. For each Metric the Balanced Scorecard has a target value.
Second Generation View
Business Strategy Map template
The second generation adds the Strategy Map concept. The Strategy Map enables the representation of cause and effect between objectives and outcomes.
Third Generation View
The third generation adds a Vision Statement, definitions for strategic objectives to the second generation Balanced Scorecard. A third generation view consists of:
See also: The Balanced ScorecardDiscuss Contract Custom Solution
- ↑ R.S. Kaplan & D.P. Norton: The Balanced Scorecard, Harvard Business Review Press
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