Balanced Scorecard

Do you want to improve your business performance management? Do you want to ensure that your strategy execution is on track? If yes, then the Balanced Scorecard is what you need. This tool helps organizations to measure and monitor their performance through Key Performance Indicators (KPIs) and metrics presented in dashboards. In this blog post, we'll answer the six most popular questions about Balanced Scorecard.

What is Balanced Scorecard?

Balanced Scorecard is a strategic planning and management system that helps organizations align their activities with their mission, vision, and strategy. It provides a framework for measuring and managing performance. It was developed by Robert Kaplan and David Norton in the early 1990s.

How does Balanced Scorecard work?

Balanced Scorecard works by identifying a set of KPIs that are aligned with an organization's strategy. These KPIs are organized into four perspectives: financial, customer, internal processes, and learning and growth. Metrics are then established for each KPI, and dashboards are created to track progress.

What are the benefits of using Balanced Scorecard?

The benefits of using Balanced Scorecard are numerous. It helps organizations to:

  • Align their activities with their strategy
  • Measure and monitor their performance
  • Communicate their strategy to all stakeholders
  • Identify areas for improvement
  • Take corrective action when necessary

Who can use Balanced Scorecard?

Balanced Scorecard can be used by any organization that wants to align its activities with its strategy and improve its performance. It is commonly used by large corporations, but it can also be used by small businesses, non-profits, and government agencies.

What are some examples of companies that have used Balanced Scorecard?

Some examples of companies that have used Balanced Scorecard include:

  • Ford Motor Company
  • UPS
  • American Red Cross
  • Hilton Hotels & Resorts

How can I implement Balanced Scorecard in my organization?

To implement Balanced Scorecard in your organization, you should:

  • Define your mission, vision, and strategy
  • Identify your KPIs and metrics
  • Create dashboards to track progress
  • Communicate your strategy to all stakeholders
  • Continuously monitor and adjust your performance

Implementing Balanced Scorecard requires effort and commitment, but the rewards are worth it.


  1. Kaplan, R. S., & Norton, D. P. (1996). The Balanced Scorecard: Translating Strategy into Action. Harvard Business Press.
  2. Niven, P. R. (2002). Balanced scorecard step-by-step: maximizing performance and maintaining results. John Wiley & Sons.
  3. Marr, B., & Neely, A. (2004). Business performance measurement: theory and practice. Cambridge University Press.
  4. Yaroslavski, L., & Fredendall, L. D. (2005). The balanced scorecard for small companies: a primer for owners and managers. Journal of Small Business Management, 43(4), 430-445.
  5. Howard, G., & Howard, J. (2007). The owner's manual for the brain: Everyday applications from mind-brain research. Bard Press.
Copyright © 2023 . All rights reserved.