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Balanced Scorecard Concept
Balanced Scorecard (briefly BSC) is a
measurement and evaluation methodology of the strategic alternatives,
developed by the northern American Robert Kaplan (professor at Harvard
Business School) and David Norton (company’s consultant) and made known
by the first time in 1992 on an article published on Harvard Business
Review.
The big aims of this methodology are,
according to its authors:
. Simplify the strategy and its
communication to all organization members;
. Align the organization with the
strategy;
. Connect the strategy to the plan and
annual budget;
. Measure the effectiveness of the
strategy, lying structured around four central
questions (or dimensions):
. Client’s perspective: does the
organization offer its clients a value superior to the one offered by
its competitors, as in quality and performance, price and answer
capacity?
. Processes Perspective: which is the
efficiency and effectiveness of the value chain critical processes that
generate added value for the client?
. Financial Perspective: does the
organization create enough financial sources to cover the risk and the
capital cost and to maintain its future sustainability?
. Learning and Growth Perspective: do the
organizations’ structures allow that it adjusts quickly and efficiently
to the external surrounding changes?
Since its creation, the BSC methodology
has been used by thousands of organizations of the private sector,
public sector and ONG’s all over the world. It was actually chosen, by
the famous magazine Harvard Business Review as one of the most important
and revolutionary management practices of the last 75 years.
Translated from Portuguese
by Susana Saraiva, Portuguese-English and English-Portuguese translation
specialist. Contact: spams@sapo.pt.
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