Definition: Balanced
scorecard is a strategic, measurement-based management system, originated
by Robert Kaplan and David Norton. The concept aligns business activities
to strategy and monitors performance of strategic goals over time. It describes
and explains what has to be measured in order to assess the effectiveness
of strategies.
General Use:
The balanced scorecard
offers an alternative to traditional financial indicators. In retail, by measuring
operational efficiency, employee performance and customer satisfaction, as well
as financial performance, long term strategies can be linked to short term actions.
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