How does a balanced scorecard work?
A balanced scorecard is a form of business management that combines strategic planning with core business activities to improve efficiencies, communications and performance, according to business and industry experts. The process works by using planning and metrics to accomplish management goals in four areas.Learning And GrowthLearning and growth concentrates on employees. It includes measuring key relationships (metrics), such as employee skills, retention and satisfaction. Measuring these elements allows managers to ensure that the workforce is adequately trained and relatively happy.Internal ProcessesThis is the part of company operations that drives the business, such as what the business does. Assigning measurable goals, such as product quality, efficiency in throughput and output, as well as the performance of any proprietary processes, allows management to increase operational productivity.Financial ProcessesUnder other management systems, strong emphasis is given to financial
