Introduced in 1992 by Robert S. Kaplan and David P. Norton, the Balanced Scorecard (BSC) is a concept for measuring a company's activities in relation to its vision and strategies in order to provide managers with a comprehensive overview of the performance and Effectiveness of the organisation. The new element is that the BSC does not only focus on the financial perspective, but also includes the human aspects that are the drivers of results, so that the organisation focuses on its future and long-term interests. Due to its flexible and thus comprehensive design options, the Balanced Scorecard is an instrument for establishing an integrated management system.
The dimensions of the BSC are sensibly defined individually for each organisation. However, they practically always include the financial perspective and the customer perspective, and usually also the process perspective and the potential or employee perspective.
The indicators in the BSC make it possible to track the development of this business vision. In this way, the BSC enables management to look not only at the financial aspects, but also to control structural leading indicators of business success. The term BSC is erroneously used for different types of indicator-based systems. The BSC, which is a cause-and-effectanalysis is an originally different management method than descriptive activity-based costing or the classic monetary indicator system.
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