40
The balanced scorecard
Traditional management accounts, with their emphasis on financial performance, tell us how a firm has performed in the past, but offer little information about how it might perform in the future.
To provide a more rounded view of how a firm is doing, Robert Kaplan and David Norton developed the ‘balanced scorecard’, a performance measurement system that considers not only financial measures, but also customer, business process and learning measures.
When to use it
- To develop a rounded view of how a firm, or the various business lines within a firm, are performing.
- To encourage managers to prioritise good customer service and develop their people, rather than just delivering on their financial goals.
Origins
Get Key MBA Models now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
