Balance Score Card (BSC)

The Balanced Scorecard (BSC) is a management tool developed by Robert Kaplan and David Norton in the early 1990s. The BSC is a strategic planning and management system that is used to align business activities to the vision and strategy of an organization, improve internal and external communication, and monitor organization performance against strategic goals.

The Balanced Scorecard consists of four perspectives:

• Financial Perspective This perspective looks at the financial objectives of the organization, such as revenue growth, profitability, and return on investment.
• Customer Perspective: This perspective focuses on the organization's relationship with its customers and includes measures such as customer satisfaction, customer retention, and market share.
• Internal Perspective: This perspective looks at the internal processes of the organization and includes measures such as cycle time, quality, and employee satisfaction.
• Learning and Growth Perspective: This perspective looks at the organization's ability to learn, innovate and grow. It includes measures such as employee training and development, leadership development, and knowledge management.

Each perspective is broken down into specific objectives, measures, targets, and initiatives. The objectives are what the organization wants to achieve in each perspective, the measures are how progress towards the objectives is tracked, the targets are the desired level of performance, and the initiatives are the specific actions that will be taken to achieve the objectives.

The Balanced Scorecard provides a framework for organizations to create a comprehensive view of their performance, to identify areas that need improvement, and to align their activities with their strategy. The BSC helps organizations to communicate their strategy to employees, track progress towards their goals, and make strategic decisions based on performance data.