Balanced Scorecards definition
A performance management theory and tool based around a standardised report, often supported by technology, used by managers to track what their staff are doing and the consequences that arise from these actions. It’s one of the most widespread performance management frameworks and tracks both financial and non-financial measures, each assigned a financial value. Developed by Dr Robert Kaplan and Dr David Norton in the 1990s, the balanced scorecard is designed to provide measures that answer four key questions:
- “How do shareholders view us?” (Shareholder happiness)
- “How do customers view us?” (Customer happiness)
- “What are our strengths?” (Internal business processes)
- “How do we continue to improve and create value throughout the business? (Learning & Growth)