The Balanced Scorecard (BSc)
A tool for "translating strategy into action" and managing the whole value
creation of the enterprise.
This framework was developed by Robert Kaplan and David Norton in the early 1990s in
recognition of the fact that there are more drivers of success than managers typically
refer to in setting strategy and managing performance. Typically managers refer to
financial success metrics and little else. The original BSc incorporates three additional
perspectives into account, as shown below.
Perspectives of the Balanced Scorecard
From Kaplan & Norton, The Balanced Scorecard: Translating Strategy into Action, HBS Press, 1996.
To achieve our vision, how should we appear to our customers?
Learning and Growth
To achieve our vision, how will we sustain our ability to change
Internal Business ProcessesTo satisfy our shareholders and customers, at what business
processes must we excel?
To succeed financially, how should we appear to