What is a Balanced Scorecard?

A Balanced Scorecard is indeed a performance management framework that organizations use to translate their strategic objectives into a set of performance measures. This framework provides a more balanced view of organizational performance by considering multiple perspectives, not just financial outcomes. It typically evaluates performance across various dimensions, including financial, customer, internal business processes, and learning and growth, enabling organizations to align their activities to the vision and strategy, improve internal and external communications, and monitor organizational performance against strategic goals.

By using the Balanced Scorecard, organizations can gain insights that help them drive strategic initiatives effectively. It encourages managers to focus on both short-term and long-term goals and understand how various operational activities impact these goals. This holistic approach helps organizations track the essential factors that contribute to their success and align their resources accordingly.