The Balanced Scorecard (BSC) introduced by Kaplan and Norton In 1992, began as a concept for measuring whether the smaller-scale operational activities of a company are aligned with its larger-scale objectives in terms of vision and strategy. It is designed to translate vision and strategy into objectives and measures across four balanced perspectives: financial, customers, internal business process and learning and growth. It gives a framework ensuring that the strategy is translated into a coherent set of performance measures.

By focusing not only on financial outcomes but also on the human issues, the balanced scorecard helps to provide a more comprehensive view of a business which, in turn, helps organisations to act in their best long-term interests. The strategic management system helps managers focus on performance metrics while balancing financial objectives with customer, process and employee perspectives. Measures are often indicators of future performance.

Implementing the scorecard typically includes four processes:

• Translating an organisation’s vision into operational goals

• Communicating the vision across the organisation and linking it to individual performance

• Business planning

• Feedback and learning providing the ability to adjust the strategy in reaction to changing conditions, both internal and external.

Discover how Tagetik 3.0 delivers Dashboarding & Scorecarding process

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Tagetik is a global software vendor of the first unified Performance Management & Financial Governance solution to help CFOs and CIOs simplify complex business processes.

A complete financial closed-loop software, Tagetik 3.0 unifies key processes and applications – such as budgeting, planning & forecasting, financial consolidation, financial governance, strategy management, profitability modeling, working capital analysis – to manage and control overall performance, support compliance initiatives, harmonize different views of critical financial data, enable maximum visibility down to business transactions. In this way, the CFO can support the CEO in monitoring the implementation of strategies, ensure their sustainability and control corporate performance.

Since the software leverages “built-in” processes and cross-platform technology – fully web-based and integrated with any ERP, our customers can profit by up to 50% reduction of the total cost of ownership (TCO).