What is a balanced scorecard?

The Balanced Scorecard (BSC) is a model used to analyze a company’s success. It takes into account all stakeholders involved in the process.

The primary purpose of the Balanced Scorecard is to offer a holistic view of a business. It evaluates performance from the following four perspectives:

• Customer
• Financial
• Internal business processes
• Learning and growth

The advantage of the Balanced Scorecard lies in its ability to clearly communicate strategies and track success using KPIs. This approach also provides a forward-looking method of control. However, if too much focus is placed on a single metric, optimization may become unbalanced.