Balanced Scorecard
Balanced Scorecard This uses strategic and financial measures to assess the outcome of a chosen strategy. It acknowledges the different expectations of the various stakeholders and attempts to use a 'scorecard' based on four prime areas of business activity to measure the results of the selected strategy.
Definitions
According to the Corporate Strategy by Lynch (4th edition),
- Balanced Scorecard. This uses strategic and financial measures to assess the outcome of a chosen strategy. It acknowledges the different expectations of the various stakeholders and attempts to use a 'scorecard' based on four prime areas of business activity to measure the results of the selected strategy.
According to the Strategic Management by Parnell (4th edition),
- Balanced Scorecard. An approach to measuring performance based on an array of quantitative and qualitative factors, such as ROA, market share, customer loyalty and satisfaction, speed, and innovation.
According to the Strategic Management by David and David (15th edition),
- Balanced scorecard. A framework of desired objectives; derives its name from the need of firms to "balance" quantitative (such as financial ratios and percentages) with qualitative (such as for employee morale and business ethics) objectives that are oftentimes used in strategy evaluation.
According to the Strategic Management by David and David (15th edition),
- Balanced Scorecard. A strategy evaluation tool utilized to establish, monitor, and evaluate both qualitative and quantitative (hence the word balanced) objectives in order to improve organizational effectiveness and performance.
