1. Organisations - strategic planning.
At the organisational level, a balanced scorecard is a strategic planning and analysis tool to help the organisation prioritise the different dimensions of its work.
For example, business processes, customers, organisational capacity and financial perspectives.
By setting appropriate targets across the scorecard - and monitoring against them - the organisation can better focus and rebalance its priorities for long term success.
One of the main benefits is to broaden performance measurement from a narrowly financial focus.
Especially when short term financial improvements might be achieved by actions that are harmful to the longer term success of the organisation.
2. Directors and senior managers - performance - goal congruence.
A balanced scorecard for an individual is a similarly-structured tool for target setting and performance measurement for the individual, tailored to their role in the organisation.
Well designed and implemented balanced scorecards will be consistent and complementary across the organisation, aiming to achieve goal congruence.
- Capture ratio
- Carbon footprint
- Environmental KPI
- Financial ratio
- Goal congruence
- Key control indicator
- Key performance indicator (KPI)
- Key risk indicator
- Mission statement
- Report card
- Service level agreement
- Short termism
- Strategic analysis
- Treasury performance management – waste of time or a necessity?
- Win rate