Balanced Scorecard Performance Measure
The Balanced Scorecard (BSC) is a strategic management system that translates organizational strategy into a coherent set of performance measures across four perspectives: Financial, Customer, Internal Process, and Learning and Growth. Developed by Kaplan and Norton (1992) in Harvard Business Review, the BSC addresses a fundamental management gap: most organizations measure what is easy to measure (financial results) while neglecting what drives results (customer satisfaction, operational efficiency, employee capability). By balancing financial outcomes with non-financial drivers, the BSC enables organizations to understand and manage strategy execution, identify causal relationships between performance drivers, and align organizational actions with strategic objectives.
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- Kaplan, R. S., & Norton, D. P. (1992). The balanced scorecard: Measures that drive performance. Harvard Business Review, 70(1), 71–79. · URL
- Kaplan, R. S., & Norton, D. P. (1996). The balanced scorecard: Translating strategy into action. Harvard Business School Press. · URL
- Niven, P. R. (2002). Balanced scorecard step-by-step: Maximizing performance and maintaining results. John Wiley & Sons. · URL
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