The Balance ScoreCard

The Balanced Scorecard.
One of the most interesting concepts addressed by Kaplan and Norton in their book (Kaplan and Norton, The Strategy-Focused organization, HBS Press, 2000) is the increasingly used by companies of the Balanced Scorecard as a basic skeleton to structure performance reporting. The Balanced Scorecard enables management to translate the mission, the goals and the strategies of the company, its different business units and management functions into a coherent set of performance measures. This set of performance measures is divided into four aspects: (1) the shareholder’s or financial perspective, which groups the measures assessing the extent to which the company realizes the shareholder’s expectations;(2) the customer’s perspective which measures the perception of the company by its clients;(3)the internal processes perspective which determines the performance of critical internal processes ;(4) and the innovation and learning perspective which measures t...