Balanced Scorecard
The Balanced Scorecard was developed by Robert S. Kaplan and David P Norton as a performance measurement framework that included strategic non-financial performance measures to traditional financial ones in order to arrive at a more holistic and balanced view of organizational performance. The BSC is now-a-days extensively used in business and industry, government, and nonprofit organizations worldwide to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals. The Balanced Scorecard suggests that we view the organization’s performance from four perspectives - Learning and Growth, Internal Business Processes, Customer, Financials. All of these perspectives are like those of the legs of a table; all are necessary for the table to stand upright and be functional in a proper way. If proper training is imparted to an employee and his need for growth – personal and professional, are both taken care of, it would result in a motivated individual who is able to function more efficiently leading to superior business processes, which in turn leads to a delighted customer. A delighted customer always returns and this would result in greater returns and profits for the company-hence taking care of the financial aspect of the business.