25 Need-To-Know Management Models

Chapter 5

Balanced scorecard

• Why use it? The balanced scorecard helps to clarify the organisation’s long-term vision, goals and objectives in terms of key performance indicators and to monitor the organisation’s performance and progress.
• What does it do? The balanced scorecard is a top-down method for defining an organisation’s goals and objectives and monitoring progress. It comprises four different perspectives in which progress is monitored. For each perspective, relevant key performance indicators are identified, based on the organisation’s mission and vision.
• When to use it? The BSC can be used as an alternative to traditional financial accounting methods. It not only measures an organisation’s performance from a financial and commercial ...