ECONOMICS

Detailed explanation-1: -The first step to building your balanced scorecard is to identify your strategic objectives for each business perspective: learning and growth, internal business processes, customer, and financial. Typically, each perspective will have multiple strategic goals (at least two or three) to focus on.

Detailed explanation-2: -What is a balanced scorecard (BSC)? The balanced scorecard is a management system aimed at translating an organization’s strategic goals into a set of organizational performance objectives that, in turn, are measured, monitored and changed if necessary to ensure that an organization’s strategic goals are met.

Detailed explanation-3: -The vision defines where we are going. The scorecard keeps everyone honest. The challenge lies in a management team’s ability to learn from the feedback that the scorecard provides and to change business strategy accordingly.

Detailed explanation-4: -The four perspectives of a traditional balanced scorecard are Financial, Customer, Internal Process, and Learning and Growth.