The Balanced Scorecard by Anubha Walia 

The concept of the Balanced Scorecard was created by Robert Kaplan and David Norton in 1992. Kaplan and Norton formalized the metrics collection process and developed a framework that allowed for consistent application of the metrics.

The Balanced Scorecard focuses on four perspectives: financial, customer, internal processes, and learning and growth. As organizations began to ask what must be done well in each of the four perspectives, the concept of the strategy map was developed.1. Financial perspective indicates whether an organization’s strategy execution efforts are supporting improved bottom-line results.

2. Customer perspective identifies the company’s target customers, what they expect from the organization, and what the company’s value proposition is in serving them.

3. Internal process perspective articulates the key processes that are required for the organization to add value to customers and shareholders.

4. Learning and growth perspective focuses on three types of capital: human, information, and organizational. Learning and growth is an area that is challenging for many organizations.

The Balanced Scorecard system has four unifying elements: objectives, performance measures, targets, and strategic initiatives.

*Objectives and strategy maps. Objectives concisely communicate what companies must do to excel in each of the four perspectives. A strategy map offers a one-page graphical representation of what the organization must do well. Strategy maps unify words with images that have cultural resonance for the company.

*Performance measures and targets. These items help translate the company’s strategy into a form that can be executed.

*Strategic initiatives. These are projects, activities, or programs that enable organizations to meet or exceed their performance targets.


Anubha Walia 🙂


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