Principle of Robert Kaplan and David Norton's Balanced Scorecard
n a disrupted and competitive environment, it is essential to measure performance in all its aspects and to no longer be restricted to measure only financial performance. This is indeed a loop in the long term which cannot act in a timely manner.
For Robert Kaplan and David Norton a successful implementation of the strategy, that is to say when the creation of values is to go, depends on the quality of management of specific perspectives.
The four perspectives of BSC
With balanced scorecard (BSC), Robert Kaplan and David Norton describe how to decline performance according to four perspectives which are financial perspective, customer perspective, internal process and learning and growth.
- Financial Perspective
What is our performance as defined by shareholders?
- Customer Perspective
What is our performance as defined by customers?
- Internal process
What are our internal benefits?
- Learning and Growth
Are we moving forward? and how?
The important word in balanced scorecard is "balanced"
Robert Kaplan and David Norton opted for the term "balanced" scorecard to focus on the concept of balance.
- Balance between short-and medium / long term
- Balance between financial and non-financial indicators
- Balance between indicators measuring past performance and long-term or prospective indicators
- Balance between external perception and internal achieved performance
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