The document discusses the balanced scorecard, which is a strategic planning and management system used in business. It provides a framework for translating an organization's mission and strategy into a comprehensive set of performance measures. The balanced scorecard includes financial measures and also operational measures related to customer satisfaction, internal processes, and organizational growth and improvement. Using a balanced scorecard helps management focus on key measures across business areas and aligns employees to work toward common strategic goals.

1. HRhelpdesk.in
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© HRhelpdesk.in Balanced Scorecard

2. HRhelpdesk.in About BSC
 “The idea of the scorecard is to describe the essential ingredients of business
success”
 “Balanced Scorecard is one of the 15 most important management concepts ever
introduced in Harvard business Review”
 HBR, 75th anniversary issue
 50% of North American companies claim to be using Balanced Scorecard, only 10%
to 15% in India do so
© HRhelpdesk.in Balanced Scorecard

3. HRhelpdesk.in About BSC
 What is it?
 Strategic communication and performance measurement tool
 Origins
 Developed from a tool in 1980’s, but some similarities with other pre-existing
tools
 Introduced to wider audience in early 1990s by R. Kaplan & D Norton in series of
articles in HBR
 Underlying philosophy
 Clear communication of goals and priorities
 Learning & team working
© HRhelpdesk.in Balanced Scorecard

4. HRhelpdesk.in About BSC
 A set of performance measures that is linked to the organizations strategic objectives
and gives management a comprehensive view of the business
 The balanced scorecard includes traditional financial measures that track financial
results of past actions
 Non-financial or operational measures on customer satisfaction, internal processes,
innovation and learning processes balance the financial measures and drive future
performance
 The scorecard directs the organizations future efforts and helps set up critical
priorities for management
© HRhelpdesk.in Balanced Scorecard

5. HRhelpdesk.in Strategic Advantages
 Keeps management focused on critical measures across entire business processes
 Helps align objectives to ensure that every person and unit is working in the same
direction
 Motivates employees, improves reward system, improves employee satisfaction and
enhances corporate culture
 Helps Senior Management communicate their vision
 Helps improve organizations productivity and enhances success measures
© HRhelpdesk.in Balanced Scorecard