What is a balanced scorecard?
The Balanced Scorecard (BSC) was first introduced by Robert Kaplan and David Norton in 1992, as a multidimensional performance measurement framework. The underpinning factor was that organisations should not just measure their financial performance but have a set of balanced measures across different areas of the business. With the initial balanced scorecard its authors proposed that companies create strategic measures in four interlinked perspectives: financial perspective, customer perspective, internal process perspective, and learning & growth perspective.The latest evolution of the BSC emphasises the use of Strategy Maps. Strategy Maps help visualise the cause-and-effect relationships between strategic objectives in the four different perspectives. The premise of Strategy Mapping is that financial performance is achieved by delivering a unique customer value proposition.
