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The Balanced Scorecard or BSC Brayan

The Balanced Scorecard (BSC), developed by Dr. Robert Kaplan and Dr. David Norton, is a strategic management framework that measures organizational performance through both financial and non-financial metrics to promote long-term success. It is widely adopted across various sectors, including business, government, and nonprofits, with its perspectives encompassing financial, customer/stakeholder, internal processes, and organizational capacity. Implementing the BSC enhances decision-making, strategic alignment, and competitiveness while facilitating real-time information access and adaptability to changing environments.

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Raymond Eliot
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10 views1 page

The Balanced Scorecard or BSC Brayan

The Balanced Scorecard (BSC), developed by Dr. Robert Kaplan and Dr. David Norton, is a strategic management framework that measures organizational performance through both financial and non-financial metrics to promote long-term success. It is widely adopted across various sectors, including business, government, and nonprofits, with its perspectives encompassing financial, customer/stakeholder, internal processes, and organizational capacity. Implementing the BSC enhances decision-making, strategic alignment, and competitiveness while facilitating real-time information access and adaptability to changing environments.

Uploaded by

Raymond Eliot
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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The Balanced Scorecard or BSC was originally developed by Dr.

Robert Kaplan of Harvard


University and Dr. David Norton as a framework for measuring organizational performance using a
more balanced set of performance measures. Traditionally companies used only short-term
financial performance as the measure of success. The “balanced scorecard” added additional non-
financial strategic measures to the mix in order to better focus on long-term success. The system
has evolved over the years and is now considered a fully integrated strategic management system.

This new approach to strategic management was first detailed in a series of articles and books by
Drs. Kaplan and Norton and built on work by Art Schneiderman at Analog Devices. Recognizing
some of the weaknesses and vagueness of previous management approaches, the balanced
scorecard approach provides a clear prescription as to what companies should measure in order to
‘balance’ the financial perspective.

Who uses BSCs?

BSCs are used extensively in business and industry, government, and nonprofit organizations
worldwide. More than half of major companies in the US, Europe, and Asia are using the BSC, with
use growing in those areas as well as in the Middle East and Africa.

BSC’s perspective

 Financial (or Stewardship): views an organization’s financial performance and the use of
financial resources

 Customer/Stakeholder: views organizational performance from the perspective of the


customer or key stakeholders the organization is designed to serve

 Internal Process: views the quality and efficiency of an organization’s performance related
to the product, services, or other key business processes

 Organizational Capacity (or Learning & Growth): views human capital, infrastructure,
technology, culture, and other capacities that are key to breakthrough performance

Advantages of implementing the BSC

- Better control and vision on each area operation


- Linking objectives and strategies
- Show up essential information in order to take an accurate financial decision

Impact on business administration

- Provides information in real time


- Improves on decisions making
- Allows to create and design efficient strategies
- Allows to have business competitiveness
- Helps on targets achievement
- Contributes to organization growing in the short and long term
- It adapts easy on changing business environments

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