Balance Scorecard

ACC 213
What is Balanced
Scorecard?
• Balanced scorecard, or BSC, is a
visual tool used to measure the
effectiveness of an activity
against the strategic plans of a
company.

• Often used during strategic

planning to make sure the
company's efforts are aligned
with the overall strategy and
vision.

• A framework for measuring

organizational performance
using a more balanced set of
performance measures.
 Four Perspectives
Financial
Measures of profitability and market value among cthers, as indicators of how well the firm
satisfies its owners and shareholders.These financial measures show the impact of the firm's
policies and procedures on the firm's current financial position and therefore its current
return to the shareholders.
Customer
Measures of quality service and low cost, among others, as indicators of
how well the firm satisfies its customers.

Internal business
process
Measures of the efficiency and effectiveness with which the firm
produces the product or service.

Innovation and learning

Measures of the firm's ability to develop and utilize human resources to

meet the strategic goals now and into the future.
 1
Develop your Company vision

2 Determine your Strategic Objectives

How to
develop a
Balance 3 Analyze what factors will bring success
Scorecard

4 Choose your key performance indicators

5 Set your targets, plans, and initiatives

 Advantages Disadvantages
Needs to updates thoroughly
Facilitates better alignment on a regular basis to stay
relevant

Encourages long term Very difficult to balance all

strategies perspectives

Connects the individual

Must be tailored to the
worker to organizational
organization
goals

Keep strategy front and

Requires a lot of data
center
THANK YOU!