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Balance Scorecard

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Balance Scorecard
The balanced scorecard is a strategic planning and management system that is used to align business activities to the vision statement of an organization, improve internal and external communications, and monitor organization performance against strategic goals. It was originated by Robert Kaplan (Harvard Business School) and David Norton as a performance measurement framework that added non-financial performance measures to financial performance measure to give managers and executives a more balanced view of organizational performance. It not only provides performance measurements, but also helps planners identify what should be done and measured and it enables executives to truly execute their strategies. It also provides feedback from both the internal business processes and external outcomes in order to continuously improve strategic performance and results.
A Balanced Scorecard approach generally has four perspectives:
1. Financial perspective
Timely and accurate financial data is always needed by an organization. This perspective is concerned with the shareholders view of performance. Shareholders are concerned with many aspects of financial performance, such as market share, revenue growth, profit ratio, and return on investment.
2. Internal business processes perspective
This perspective refers to internal business processes. Balanced scorecard measures help managers to know how well their business is running. There are two kinds of business processes in balanced scorecard terms: mission processes that enable the delivery of the organisation's overall mission, and support processes, which are the repetitive tasks people carry out in the course of their work.
3. Learning and growth perspective
This perspective includes employee training and corporate cultural attitudes related to both individual and corporate self-improvement. In

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