Balanced Scorecard Measures That Drive Performance

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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) 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) The model usually measures four core domains in organised into quadrants; the customer perspective, internal business perspective, innovation and learning perspective, and the financial perspective. Each closely relating to an 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.

However, 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 performance. (Hubbard 2009, p.179) Thus, the Sustainability Balanced Scorecard (SBSC) is built upon the original BSC but includes the additional domains of social and environmental performance, as to, “address strategic orientation
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