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Balanced Scorecard

The balanced scorecard (BSC) is a performance measurement framework by Kaplan and Norton. It has evolved later in a strategy execution framework.

The BSC is the presentation of a mixture of financial and non-financial measures and attaching targets to them. The original BSC had 4 perspectives and there exists now a few variants including more dimensions:
• Financial: “How do we look to shareholders?”
• Customer: “How do customers see us?”
• Internal business processes: “What must we excel at?”
• Learning and growth: “How can we continue to improve, create value and innovate?”

An enriched balanced scorecard which I find interesting includes the following perspectives:
• Employee Satisfaction: “How strong is the company culture, are the employees happy?”
• Environment & Community: “How do we connect with the world?”

You may use the BSC to first put down your CSFs as a canvas, and later, when defining the KPIs, refine the BSC with directly measurable items to which you could assign objectives.

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