Balanced Scorecard

A balanced scorecard measures performance across several perspectives at once, financial, customer, internal process, and learning, rather than judging on cost alone. It keeps a gain in one area from quietly causing a loss in another.

In process improvement

When you weigh a process change, a balanced view matters: a change that cuts cost might lengthen customer wait time. Because a simulation reports many measures together, cost, time, utilization, and throughput, you can judge a change across all of them before committing, in the same spirit as a balanced scorecard.

LegacyHow this worked in the previous version

The balanced scorecard is a strategic management system used to drive performance and accountability throughout the organization.

The scorecard balances traditional performance measures with more forward-looking indicators in four key dimensions:

• Financial
• Integration/Operational Excellence
• Employees
• Customers

Benefits include:

• Alignment of individual and corporate objectives
• Accountability throughout the organization
• Culture driven by performance
• Support of shareholder value creation