Balanced Scorecard

Balanced Scorecard

Elements of Balanced Scorecard:

Goals & Measures of Financial, Customers, Internal Business Processes, Learning and Growth


Balancing financial objectives to critical success factors as process capabilities, customer satisfaction and learning/change


Kaplan & Norton, 2002 Five key areas of activity

  • Translating vision and strategy into operational terms
  • Aligning the organisation to strategy
  • Making strategy everyone’s job
  • Making strategy a continual process
  • Mobilising change trough executive change

Not: quick fix, performance measurement, all organisations

Limitations and dangers: Demands management maturity and flexibility, demands participative management, to many measures, time and effort, potential flexibility lack, internal perspective

Interdependence between the 4 perspectives a strength

Setting up goals, measures, targets, initiatives (milestone targets throughout future years)

Customer perspective example:


To secure a few key success measure that make change more likely

To communicate vision, values and strategy to all in organisation

To catalyse culture change

As framework for business planning

Provide KP measures against targets (benchmarks)

Support decision-making by effect evaluation

To provide feedback and learning

Source of Balanced Scorecard:

(Kaplan & Norton, 1992 & 1996)