Balanced Scorecard Flashcards, test questions and answers
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What is Balanced Scorecard?
A balanced scorecard is a strategy management tool used to measure an organization’s overall performance. It is designed to help organizations assess how they are doing in terms of their strategic objectives, by evaluating performance across four different perspectives: financial, customer, internal processes and learning & growth. The idea behind the balanced scorecard is that it can provide a more comprehensive view of an organization’s performance than traditional measures such as profits or return on investment (ROI).The financial perspective looks at the short-term and long-term financial goals set for an organization. The customer perspective evaluates how customers perceive the products and services offered by the business. The internal process perspective evaluates how well key tasks are being completed. Finally, the learning & growth perspective evaluates how well employees are being developed and what opportunities exist for them to improve their skillsets. The goal of using a balanced scorecard is to align all activities within the company with its overall strategy and objectives. This helps ensure that each department or division within the company works together towards achieving shared goals in a unified manner. By focusing on these four perspectives, organizations can determine whether they are meeting their targets in terms of financial success, customer satisfaction, operational efficiency and human capital development. When utilizing a Balanced Scorecard approach it is important to remember that there needs to be alignment between all areas of focus so they work together in harmony towards achieving desired outcomes. Additionally, this approach requires regular monitoring as well as feedback from stakeholders to ensure continual improvement over time.