Balance Scorecard (Balanced Scorecard)

The balanced scorecard has been widely used since its launch in 1990s and has been quickly transformed from a new performance measurement system to a strategic management system. The Balanced Scorecard introduces a set of specific indicator framework systems, including four parts: (1) finance, (2) Customer, (3) internal management, (4) learning and growth.

Its core idea is to show the strategic trajectory of an organization through the driving causal relationship among finance, customer, internal business process, and learning and growth indicators. The above four aspects have a deep internal relationship: good financial interests of enterprises will come from the satisfaction of customers, and enterprises can provide customers with greater value only by improving their internal management capabilities, the improvement of internal management capability should be based on learning and growth.

This is called a balanced scorecard because the above indicators represent the balance between financial and non-financial indicators, long-term and short-term indicators, business indicators and market indicators, business indicators and market indicators.