What is Balance Scorecard?

A definition of Balance Scorecard

“A balanced scorecard is a strategic management tool used to track and manage an organization’s performance across financial, customer, internal processes, and learning and growth perspectives.”

Balance Scorecard in Business Glossary - What is a Balance Scorecard?

Business Glossary > What is Balance Scorecard?


Examples of Balance Scorecard in a Sentence:

The balanced scorecard helps align business activities to the vision of the organization.

Our company implemented a balanced scorecard to improve strategic decision-making.

Executives rely on balanced scorecards to measure key performance indicators.

Why is Balance Scorecard Important in Business?

The balanced scorecard provides a comprehensive framework that translates an organization’s strategic objectives into a coherent set of performance measures. It ensures no single aspect of business performance dominates, helping organizations maintain balance between financial and non-financial metrics.

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Associated Terms

Here are some associated business terms and synonyms for “Balance Scorecard”:

  • Performance Measurement System
  • Strategic Planning Framework
  • Strategy Management Tool

Coca-cola Balanced Scorecard

Coca-cola uses a balanced scorecard to align business activities to its strategic vision. By using this tool, the company tracks performance across multiple perspectives to ensure sustainable growth and profitability.

Final Notes on Balance Scorecard

When utilizing a balanced scorecard, companies should be mindful of tailoring their strategic goals across financial and non-financial perspectives. Regular updates and reviews of the scorecard enhance its effectiveness in driving organizational success.


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