The balanced scorecard is used to manage performance in any business model, organizational structure, or business process.
The balanced scorecard is a strategic planning and management tool used to measure organizational performance beyond the traditional financial measures. It is outcome focused and provides a balanced view of an enterprise by implementing the strategic plan as an active framework of objectives and performance measures. The underlying premise of the balanced scorecard is that the drivers of value creation are understood, measured, and optimized in order to create sustainable performance.
The balanced scorecard is composed of four dimensions:
The balanced scorecard includes tangible objectives, specific measures, and targeted outcomes derived from an organization’s vision and strategy. Balanced business scorecards can be used at multiple levels within an organization. This includes at an enterprise-wide level (macro level), departmental or function level, and even at the level of a project or initiative.