Key Management Models, 3rd Edition

17

Balanced scorecard

The big picture

The balanced scorecard (BSC) was developed by Kaplan and Norton in 1992 as an alternative to traditional performance measurement approaches that focus solely on financial indicators, and are based purely on a company’s past performance. The BSC is a top-down method for defining an organisation’s goals and objectives (Figure 17.1). It comprises four different perspectives in which progress is monitored. For each perspective, relevant key performance indicators are identified, based on the organisation’s mission and vision. These help to clarify the organisation’s long-term vision. In this way, an organisation ...