What is the Balanced Scorecard?
The Balanced Scorecard is a framework for matching what we do with what we intend to do. And we intend to be our vision.
- If you’re planning a dream snorkeling trip to Mexico, your intention—your vision—is to have a beautiful, problem-free trip.
Balanced in what way…?
Success requires more than satisfying the bottom line. Successful operation requires technical skills, procedures and teamwork.
- Like your trip - you need enough money to buy hotel and plane tickets (Financial). You need to hone snorkeling skills (Learning and Growth), secure reliable ground transportation (Internal Processes) and check health insurance coverage (Customer - that’s you, in this case).
And “Scorecard” says measure. Why do we measure?
We measure to check how well our organization’s performance matches our intentions. Measuring shows how well we are following our strategy, what’s working and what is not.
- You periodically measure your progress toward that trip: is your passport current, are you saving enough money, are you finding the right snorkeling equipment, are you making hotel reservations?
So…what is the strategy map part?
Strategy is what we will do to reach our objectives; it answers “how?” We map out our path.
- For that trip, your strategy includes having a savings plan, researching snorkeling equipment, finding a place to stay—that sort of thing.