The Balanced Scorecard is a strategy used to drive performance and accountability. Under this system the organization develops performance measures in each of the four categories:
- Financial (the traditional focus of performance)
- Customer (the present and future needs and expectations)
- 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.