Balanced Business Scorecard
Introduction
The Balanced Business Scorecard (also known as BBS) is a strategic planning and implementation technique used to assess the organisational performance. BBS is a handy tool to measure the performance of a business unit, process or an organisational structure in multiple dimensions besides the traditional financial aspects.
The Balance Business Card is a powerful technique that helps with understanding how well the strategy has been implemented. Performance is measured along the four key dimensions of Customer, Learning & Growth, Internal Business Processes and Financial ( popularly addressed by the mnemonic CLIF).
Besides measuring the performance along the four dimensions, the scorecard assesses the effectiveness and efficiency of strategy implementation in terms of the following:
- Strategic objectives
- Tangible performance measures
- Targeted initiatives
- Outcomes
Purpose
The BBS helps with measuring the performance of a business unit or organisational structure in implementing strategies.
Stake holders
Senior Management, CXOs, Heads of divisions, Consultants, Analysts
Context
After the strategic analysis, organisations could start defining and implementing strategies. BBS is used to assess how well the strategies are implemented against the plans.
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