The Balanced Scorecard is
used to drive performance and accountability.
Under this system the organization develops
performance measures in each of the four
- Financial (the traditional focus of
- Customer (the present and future needs
- Business Processes (the efficiency
of the operations)
- Learning and Growth (developing the
knowledge and expertise in the organization)
The belief that underpins the balanced
scorecard is that in traditional organizations
there is too much emphasis on financial
measures that can lead to a short-term focus
on the bottom line at the expense of activities
that are essential to long-term success.
See the text "The Balanced Scorecard"
by Robert Kaplan and David Norton.