What is Balanced Scorecard?

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Knowing what your company's goals are and where it wants to go, strategically, is essential for business survival. The Balanced Scorecard management model, the subject of one of the classes in the short course Strategic Planning and Management , can help you with this.

Learn more about the concept of this model audit directors auditors email database and how you can apply it!

Balanced Performance Indicators
The Balanced Scorecard can be translated, in Portuguese, as Balanced Performance Indicators.

Launched by Harvard professors David Norton and Robert Kaplan, this strategic management model, from the beginning, aimed to move away from the traditional use of financial, revenue or market indicators.

Therefore, the Balanced Scorecard is a methodology that, without being linked to financial metrics:

measures the performance of organizations;
defines strategies;
helps measure progress; and
carries out planning in a broader and more comprehensive way.
Applying the Balanced Scorecard
Due to the great positive results obtained, the Balanced Scorecard methodology has been widely used in organizations.

Its crucial point is to make the company administrator understand and carry out all of its strategies, without exception.

4 strategic perspectives
To apply the Balanced Scorecard in your organization, from 4 types of strategic perspectives, you need to:

Financial Perspective : define the financial goals you want to achieve. Note that this is not about looking at your financial results, the aim is still to avoid this type of metric, but rather to look to the future and where you want to go financially;
Market Perspective : look at customer needs that need to be met;
Internal Processes Perspective : perceive processes that need to be improved within the company; and
Learning Perspective : analyze where the company needs to innovate.
With the analyses carried out and the perspectives defined, it is necessary to transform all types of strategy into action.

To this end, objectives, indicators, goals to be achieved and initiatives and interventions that must be taken to achieve the determined balanced performance goals are defined.

With these attitudes, the Balanced Scorecard business model will be ideal for your company and, therefore, will be able to bring effective results in your day-to-day activities!