Balanced scorecard (Management)
Enlarge text Shrink text-
Topic
- Work cat: Reddy, A.V. Designing New York City subways' key performance indicators to improve service delivery and operations, 2014:abstr. (A balanced scorecard (BSC) is widely used in private industry and the public sector to monitor key performance indicators (KPIs) and to help achieve strategic outcomes. This concept is widely used in the transit industry for carrier-regulator contractual relationships and performance monitoring) p. 21 (NYCT's [New York City Transit's] industry benchmarking, stakeholder demands, and the burgeoning line general manager (LGM) program together led to an effort to design a set of KPIs to measure agencywide operational performance using BSC frameworks)
- Balanced Scorecard Institute WWW home page, Jan. 27, 2015resources/about the balanced scorecard (Balanced scorecard basics. The balanced scorecard is a strategic planning and management system that is used extensively in business and industry, government, and nonprofit organizations worldwide to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals)
- Accounting, organizations and society, Aug. 2003:p. 591 (The balanced scorecard ... aims to solve the problem related to the historical nature of the financial measures of accounting systems ... . It does so by integrating financial and nonfinancial strategic measure variables in a cause-and-effect relationship which assumes the following: measures of organisational learning and growth → measures of internal business processes → measures of the customer perspective → financial measures. The assumption that there is a cause-and-effect relationship between the suggested areas of measurements is essential because the measurements in non-financial areas make the performance measurement system a feed-forward control system ...)
- Journal of corporate accounting & finance, July-Aug. 2010:p. 63 (Multiple-item performance evaluation systems, such as the balanced scorecard (BSC), have been advanced as useful tools for performance evaluation within organizations. They commonly are used for evaluating performance of strategic business units and also individuals. Effective scorecards include metrics selected by top management to represent strategic objectives of the organization; scorecards often include as many as 24 performance measures. These measures should focus on activities and reflect how each position in the organization can impact the organization's strategic objectives)
- Journal of industrial ecology, Oct. 2005:p. 73 (To provide valuable support for successful decision-making, managers need a balanced set of financial and nonfinancial measures that represent different requirements, strategic goals, strategies, resources, and capabilities and the causal relationships between these domains. The balanced scorecard is such a measurement system. As an open system the balanced scorecard facilitates the consideration of sustainability issues)
A balanced scorecard is a strategy performance management tool – a well-structured report used to keep track of the execution of activities by staff and to monitor the consequences arising from these actions. The term 'balanced scorecard' primarily refers to a performance management report used by a management team, and typically focused on managing the implementation of a strategy or operational activities. In a 2020 survey 88% of respondents reported using the balanced scorecard for strategy implementation management, and 63% for operational management. Although less common, the balanced scorecard is also used by individuals to track personal performance; only 17% of respondents in the survey reported using balanced scorecards in this way. However it is clear from the same survey that a larger proportion (about 30%) use corporate balanced scorecard elements to inform personal goal setting and incentive calculations. The critical characteristics that define a balanced scorecard are: its focus on the strategic agenda of the organization/coalition concerned; a focused set of measurements to monitor performance against objectives; a mix of financial and non-financial data items (originally divided into four "perspectives" - Financial, Customer, Internal Process, and Learning & Growth); and, a portfolio of initiatives designed to impact performance of the measures/objectives.
Read more on Wikipedia >