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The balanced scorecard is a strategic planning and management system that is used extensively in business and industry, government, and non-profit 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. The main purpose of this performance measurement framework is to add strategic non-financial performance measures to traditional financial metrics in order to give managers and executives a more ‘balanced’ view of organizational performance. The balanced scorecard transforms an organization’s strategic plan from an attractive but passive document into the ‘marching orders’ for the organization on a daily basis. Its framework not only provides performance measurements, but also helps planners identify what should be done and measured. It enables executives to truly execute their strategies. ... Less
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