The Balanced Scorecard (BSC) is a balanced key performance indicator system (=scorecard) for corporate planning and control. With a suitably structured BSC, management can recognize early on whether it is on the right track with its strategy implementation.
In contrast to traditional key performance indicator systems, which are usually oriented towards the past and are mainly limited to (often many) financial indicators, the BSC is based on only a few, essential indicators from all relevant areas of the company and on the cause-effect relationships that connect them.
Logical structure of a BSC:
Vision --> Strategy --> Perspectives --> critical success factors --> Key performance indicators --> Responsibilities and activity plans to achieve the goals.
Business areas:
In addition to the area of "finance", areas such as "customers and market", "internal processes and resources", "innovations and employees" as well as "soft" factors such as "learning and development" are included, each area represented by a group of key figures. The BSC can also be used in sub-areas of a company.
See also:
Key performance indicators; benchmarking; controlling; strategic management; corporate objectives; performance management
Reference to QET guidelines:
Q06 Change Management; Q08 Product Management; Q13 Succession; Q15 Processes; Q16 Flexible Organisation; T05 Contracts; T06 Social Media; T14 Controlling; T15 Benchmarking; T16 SWOT