KAPLAN AND NORTON’S BALANCED SCORECARD

Kaplan and Norton came up with the balanced scorecard approach. They decided to measure the performance of the business from 4 dimensions, using a mix of financial and non-financial information.

BALANCED SCORECARD

CUSTOMERS

FINANCIAL INTERNAL INNOVATION AND LEARNING

PERSPECTIVE Customers Internal

Innovation and learning Financial

QUESTION What do existing and new customers value from us? What internal business processes must we excel in to achieve our financial and customer objectives? Can we continue to improve and create future value? How do we create value for our shareholders?

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Used for both internal and external purposes Mix of financial and non-financial info Related to the key elements of the organisation’s strategy