Balanced Scorecard
Updated on March 13, 2023
Balanced Scorecard is often used by businesses to ascertain or measure the quality of operations and the outcomes along with other parameters like feedback from customers, financial operations, etc. This pool of information is then utilised to improve the overall efficiency of the organisation. This concept was introduced by David Norton and Robert Kaplan in 1992 and was originally used by for-profit organisations but was later adopted by Government and non-profit organisations as well.
The core area of focus of a balanced scorecard are
-Business process
-Finance
-Learning and development
-Customers
The organisation used the balanced scorecard to identify the various processes, targets, initiatives and scope for improvements in the areas mentioned above. The information is used to identify weaknesses in the specified processes enabling the organisation to take remedial measures. This tool is also used to map the progress of the function and the strategies adopted to achieve the desired results. This tool is thereby used as a quality check for optimum allocation of resources and various qualitative aspects of the business along with standard financial measures
