Balanced Scorecard

2 min. readlast update: 05.21.2024

What Is A Balanced Scorecard?

A strategic planning and management tool that helps organizations align business activities with vision and strategy by tracking performance across four perspectives: Financial, Customer, Internal Processes, and Learning & Growth.


Why Should My Business Use A Balanced Scorecard?

It provides a comprehensive view of organizational performance, ensures strategic alignment, improves communication, and helps prioritize initiatives.


What Are The Four Perspectives Of The Balanced Scorecard?

Financial, Customer, Internal Processes, and Learning & Growth.


How Do I Develop A Balanced Scorecard?

Define clear objectives for each perspective, identify relevant KPIs, set targets, and link them to strategic initiatives.


What Are Common KPIs For The Financial Perspective?

Revenue growth, profit margins, return on investment (ROI), and cash flow.


What Are Common KPIs For The Customer Perspective?

Customer satisfaction, retention rates, Net Promoter Score (NPS), and market share.


What Are Common KPIs For The Internal Processes Perspective?

Process efficiency, cycle time, defect rates, and cost of quality.


What Are Common KPIs For The Learning & Growth Perspective?

Employee satisfaction, training effectiveness, skill development, and innovation rates.


How Can I Ensure Successful Implementation Of A Balanced Scorecard?

Secure executive support, communicate clearly, involve key stakeholders, and regularly review and update the scorecard.


How Often Should The Balanced Scorecard Be Reviewed?

Regularly, typically quarterly or annually, to ensure it remains relevant and aligned with strategic goals.

Was this article helpful?