Balanced Scorecard - a management system based on a systemic use of performance measures to guide decision making. The concept was developed in order to provide greater focus on areas that were often neglected when the preponderance of focus was placed on a limited number of indicators - often just financial indicators.
Partially the balanced scorecard method provides more focus on often neglected areas by putting measures of those areas in front of management and relying on the axiom that "you get what you measure." By providing data to focus on areas such as organizational learning the hope is managers will take a more holistic approach to management.
The four areas of focus for the balanced scorecard are:
- Learning (building the capacity of the organization)
- Business Process
- Customer
- Financial
Related Terms:
Online Resources:
