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3 Cards in this Set
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Balanced scorecard attempts to measure and provide feedback to organisations in order to assist in implementing strategies and objectives.
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It was developed by David Norton and Robert Kaplan. They published an article in the Harvard Business Review. Their aim was to study performance measurement in companies whose intangible assets played a central role in value creation.
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Balanced scorecard focuses on four perspectives. The first being Financial. To succeed financially, how should we appear to our shareholders? Should we focus on revenue maximisation so a more long term approach or profit maximisation, a more long term approach.
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Secondly, Internal Business Process. To satisfy our shareholders and customers, what business processes must we excel at? Should we focus on developing new innovative products or reducing the cycle time of our current ones?
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Thirdly, Learning and Growth. To achieve our vision, how will we sustain our ability to change and improve. For example, should we hire more talented staff for growth or should we focus on improving productivity.
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Finally, customer. To achieve our vision, how should we appear to our customer? Should we take a cost leadership approach or a service excellence approach. All four of these perspectives, financial, internal business process, learning and growth and customer must be centred around the vision and strategy of the organisation. I will now pass you onto Luke who will go over the case study.
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