The acronym "BSC" stands for Balanced Scorecard, which is a strategic performance management tool used by organizations to measure and manage their performance effectively. The Balanced Scorecard takes a holistic approach by considering multiple dimensions rather than focusing solely on financial indicators.
The BSC framework intends to provide a balanced view of an organization's performance, considering its financial, customer, internal process, and learning & growth perspectives. Each perspective is associated with specific objectives and key performance indicators (KPIs), which are carefully selected to align with the organization's overall strategy.
From the financial perspective, the BSC evaluates an organization's profitability, revenue growth, and cost control performance. The customer perspective examines how well the organization is meeting customer needs and expectations, measuring indicators like customer satisfaction and market share.
Internal process perspective assesses the efficiency and effectiveness of the internal processes and operations. It includes evaluating factors like product/service quality, operational performance, and innovation.
The learning and growth perspective focuses on the organization's ability to adapt, learn, and improve over time. This involves measuring employee performance, talent development, and knowledge management.
By implementing the Balanced Scorecard, organizations can monitor and manage their performance effectively, aligning different aspects of their operations with their strategic objectives. It provides a comprehensive overview of performance, facilitating decision-making and continuous improvement efforts.
