Balanced Scorecard Measures That Drive Performance

1723 Words Sep 5th, 2015 7 Pages
Balanced Scorecard Framework

The Balanced Scorecard framework was first introduced in the 1992 Harvard Business review article, ‘The Balanced Scorecard—Measures that Drive Performance.’ (Kaplan 2006) The purpose of the Balanced Scorecard is to harmonise the corporation’s strategy, operational objectives and performance measures so that they can be controlled to achieve goals. (Stevanovic et al. 2012, p.261) The BSC can be conceptualized as, “…a management system, which is structured according to the logic of the cyber-netic management circle (“plan-do-check-act”) (Bieker 2002, p.2) The model usually measures four core domains organised into quadrants; the customer perspective, internal business perspective, innovation and learning perspective, and the financial perspective. Each closely relating to a recognised aspect of firm performance. (Kaplan & Norton 2005) As seen in the figure below, the scorecard is organised such that the interrelationship between these variables as well as comparison between goals and measures are easily seen.

Sustainability Balanced Scorecard

From a sustainability perspective, the original BSC does not “encompass all stakeholder expectations.”(Huang et al. 2014, p.20) and is primarily used for measuring internal and external traditional performance. (Hubbard 2009, p.179) The Sustainability Balanced Scorecard (SBSC) is built upon the original BSC demonstrating the same causal links, but includes the additional…
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