Balanced scorecard
The Balanced Scorecard (BSC) is a strategy performance management tool - a semi-standard structured report, supported by design methods and automation tools, that can be used by managers to keep track of the execution of activities by the staff within their control and to monitor the consequences arising from these actions.
The critical characteristics that define a balanced scorecard are:
its focus on the strategic agenda of the organization concerned
the selection of a small number of data items to monitor
a mix of financial and non-financial data items.
Use
Balanced scorecard is an example of a closed-loop controller or cybernetic control applied to the management of the implementation of a strategy. Closed-loop or cybernetic control is where actual performance is measured, the measured value is compared to an expected value and based on the difference between the two corrective interventions are made as required. Such control requires three things to be effective:
