What is a balanced scorecard
A balanced scorecard is a combination of measures into a consolidated view of business performance. This consolidated view is then used to measure performance against business objectives.
Balanced scorecards have been around since the early 1990’s and have become an increasingly popular form of performance indicator. They can take various guises and whilst there are no hard and fast rules they generally contain measures covering
• Financials
• Customers
• Processes
• Growth
Within each section a number of measures can be included, these depend on the prevailing issues within the business. The scorecard is then graphically portrayed on one “report”.
A number of software packages are available to facilitate the creation of business scorecards and business intelligence systems increasingly include support for scorecards or consolidated views (see www.xcelsius.com for example).
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