The Learning and Growth perspective is focused on the organizational development and learning. This aspect of the balanced scorecard measures the human capital available to the company, its processes, and the way in which it uses technology to manage its data and activities. Its primary focus is to make sure the organization has proper training, resources, and systems that enable it to meet its objectives.
The Business Process perspective covers how a company functions and the strategy by which it manages its activities. It emphasizes the improvement of internal processes, with the goal of better efficiency and customer satisfaction. This aspect of the BSC helps companies to consider how they go about achieving their objectives and how to measure success in improvement in corporate processes.
The Customer Perspective focuses on the end-user, including their satisfaction. It has two goals: improving customer relationships and increasing customer base. The metrics used to measure this perspective may include feedback from customer surveys, customer satisfaction ratings, and customer loyalty.
The Financial Perspective is focused on the overall financial health of the organization. This includes measuring financial objectives such as revenue, cost, and ROI. It also includes assessing the impact of intangible assets, such as innovation and strategic investments. This aspect of the BSC serves to reinforce the importance of achieving both short-term financial objectives and meeting the long-term goals of the company.
The balanced scorecard is an increasingly useful tool in the performance management arena. BSCs allow companies to take an integrated, holistic approach to analyzing their operations and performance, providing a wide array of metrics to consider when managing the business. By examining multiple perspectives and developing aligned metrics, companies can create ambitious strategies with well-defined tactical plans, leading to better decision-making and improved performance.
The Business Process perspective covers how a company functions and the strategy by which it manages its activities. It emphasizes the improvement of internal processes, with the goal of better efficiency and customer satisfaction. This aspect of the BSC helps companies to consider how they go about achieving their objectives and how to measure success in improvement in corporate processes.
The Customer Perspective focuses on the end-user, including their satisfaction. It has two goals: improving customer relationships and increasing customer base. The metrics used to measure this perspective may include feedback from customer surveys, customer satisfaction ratings, and customer loyalty.
The Financial Perspective is focused on the overall financial health of the organization. This includes measuring financial objectives such as revenue, cost, and ROI. It also includes assessing the impact of intangible assets, such as innovation and strategic investments. This aspect of the BSC serves to reinforce the importance of achieving both short-term financial objectives and meeting the long-term goals of the company.
The balanced scorecard is an increasingly useful tool in the performance management arena. BSCs allow companies to take an integrated, holistic approach to analyzing their operations and performance, providing a wide array of metrics to consider when managing the business. By examining multiple perspectives and developing aligned metrics, companies can create ambitious strategies with well-defined tactical plans, leading to better decision-making and improved performance.