Question
The four perspectives of a traditional balanced scorecard are Financial, Customer, Internal Process, and Learning and Growth. Financial: often renamed Stewardship or other more appropriate
The four perspectives of a traditional balanced scorecard are Financial, Customer, Internal Process, and Learning and Growth.
Financial: often renamed Stewardship or other more appropriate names in the public sector, this perspective views organizational financial performance and the use of financial resources. In this component, financial ratios or stock market performance may show up to provide the information like net profit margin, total revenue, or even ROI. For stock market performance, it can provide stock price, market capitalization, and give an indication of when the best time to sell is.
Customer/Stakeholder: this perspective views organizational performance from the point of view of the customer or other key stakeholders that the organization is designed to serve. Included in this perspective you might find objectives for Customer service and satisfaction, market share, and brand awareness.
Internal Process: views organizational performance through the lenses of the quality and efficiency related to our product or services or other key business processes. Examples of internal process objectives might include process improvements, quality optimization, or capacity utilization.
Organizational Capacity (originally called Learning and Growth): views organizational performance through the lenses of human capital, infrastructure, technology, culture, and other capacities that are key to breakthrough performance. This perspective considers the more intangible drivers of performance. Because it covers such a broad spectrum, this perspective is often broken down into components like human capital, information capital, or organizational capital. These databases can help with skill assessments, performance management, culture, leadership, and things like network and technology infrastructure.
Digital dashboards make tracking easier for KPI because they present organizational capacity KPIs in visual formats, allowing stakeholders to assess employee satisfaction, productivity, skills, and IT performance immediately. It also provides historical tracking capabilities, allowing stakeholders to compare current performance with past periods. This enables the analysis of trends and progress in organizational capacity over time.
Overall, the use of digital dashboards to measure KPIs throughout the balanced scorecard is made simpler by the availability of real-time data, visual representations, customization, data integration, and insights that can be put to use. They simplify performance measure monitoring and analysis, empowering stakeholders to take well-informed decisions and promote ongoing development across the board.
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