What is Balanced Scorecard?
Balanced Scorecard (BSC) is a concept helping you translate strategy into action. BSC start
s from the company vision and strategies, from here critical success factors are defined. Measures are constructed that aid target-setting and performance measurement in areas critical to the strategies. Hence, Balanced Scorecard is a performance measurement system, derived from vision and strategy, and reflecting the most important aspects of the business. The Balanced Scorecard (BSC) concept supports strategic planning and implementation by federating the actions of all parts of
an organization around a common understanding of its goals, and by facilitating the assessment and upgrade of strategy.
Traditional performance measurement, focusing on external accounting data, was quickly becoming obsolete and something more was needed to provide the information age enterprises with efficient planning tools. For t
his purpose Kaplan & Norton introduced four different perspectives from which a company's activity can be evaluated:
The benefits of applying Balanced Scorecard can be summarized as follows: