Balance Scorecard Flashcards
Patterns & Processes
What is a balance scorecard? BSC
The balanced scorecard is a strategy performance management tool. The Balanced Scorecard, is a framework to implement and manage strategy.
It lists financials goals, customer goals, internal business goals, and innovation & learning goals.It balances financial measures with performance measures and objectives related to all other parts of the organisation. A balanced scorecard helps companies identify and improve their internal operations to help their external outcomes. It measures past performance data and provides organizations with feedback on how to make better decisions in the future.
What is a Scorecard?
The scorecard is a strategy performance management tool – it helps managers to keep track of the execution of activities by the staff within their control and to monitor the consequences arising from these actions.
What is the difference between KPI scorecard & Balanced scorecard?
The important difference is that KPI Scorecard focuses on performance metrics, whileBalanced Scorecard focuses on the business goals. KPI is the scorecard part of your balance score card!
What is the difference between KPI and scorecard?
A key performance indicator(KPI) is a business metric used to evaluate factors that are crucial to the success of an organization.
Thescorecardis based on a collection ofkey performance indicators(KPIs), each of which represents an aspect of unit performance.
Balance scorecards
Organisations fundamentally do 4 things; there are financial metrics, customer metrics, learning & growth metrics and internal business processes From each you have objectives, measures, targets, initiatives; that all roll into your strategy and help you accomplish your vision
What is the nature of Score Card?
SCORECARDS compares strategic goals with results. The scorecard focuses on a specific metric and compares it to a forecast or target. The scorecard is a report of the status, condition of something or someone.
What’s the approach of Score Card?
This tool is typically a top-down approach that allows management to implement its strategy by aligning performance with goals.
