Balanced Scorecard System Implementation

The balanced scorecard methodology has evolved since the early 1990s as a means of assessing overall business performance. It incorporates measures not only of financial results but also of drivers that influence those results. It requires that the needs of all stakeholder groups, including customers and employees, be understood and addressed. This gives business leaders a more well-rounded view of company performance and promotes more effective alignment of operations with strategy. The primary benefit of a balanced scorecard is the balance itself. Rather than focusing on a specific area of performance—usually financial—business

leaders learn to consider the full spectrum of business performance. In addition to financial measures, they look at measures of customer experience, employee development and retention and process efficiency. This prevents the problems that can arise when performance in one area is improved simply by sacrificing another area, which does not represent a sustainable solution.