Balance Scorecard

A balanced scorecard is an integrated system of performance measures designed to support an organizations strategy. The various measures in a balanced scorecard should be linked on a plausible cause-and-effect basis from the very lowest level up through the organizations ultimate objectives. The balanced scorecard is essentially a theory about how specific actions taken by various people in the organization will further the organizations objectives. The theory should be viewed as tentative and subject to change if the actions do not, in fact, result in improvements in the organizations financial and other goals. If the theory changes, then the performance measures on the balanced scorecard should also change. The balanced scorecard is a dynamic measurement system that evolves as an organization learns more about what works and what doesnt work and refines its strategy accordingly.

Why do the measures used in a balanced scorecard differ from company to company?

Why does the balanced scorecard include financial performance measures as well as measures of how well internal business processes are doing?

Write a brief statement that expresses your thoughts on performance analysis.