A new approach to strategic
management was developed in the early 90s by Dr. Robert Kaplan of Harvard Business School
and Dr. David Norton.The Balanced Scorecard is a management system (not only a measurement
system) that enables business organizations to clarify their vision and strategy to its
employees and stakeholders and translate them into action. It provides feedback around both the internal business processes and external outcomes in order to continuously improve strategic performance and results. When it is fully deployed, the Balanced Scorecard transforms strategic planning from an academic exercise into the nerve centre of an enterprise.
According to Balanced Business Scorecard principles, an organization or a functional unit or even an individual should be viewed from following four perspectives:
The Financial Perspective
The Customer Perspective
The Business Process Perspective
The Learning and Growth Perspective