A balanced scorecard reflects the most important KPIs to the execution of an organization’s strategic vision. Organized into four categories, customer, financial, internal processes, and organization capacity, these KPIs enable a focus on and strong understanding of execution and the tracking of progress towards the major goals tied to the organization’s strategy.
In the 1990s, the balanced scorecard was popularized by Robert Kaplan and David Norton, who introduced it to better align strategy with execution. The main idea being that if the KPIs of a balanced scorecard are moving in the right direction and being achieved, then an organization’s strategy is also being achieved. Typically, both short-term (quarterly or annual) and long-term (annual, 3 or 5 year) goals are represented on the balanced scorecard, along with actual performance.
To get you going on a Balanced Scorecard, download the Balanced Scorecard PowerPoint Worksheet Template.