How To Measure What Matters With the Balanced Scorecard Framework
A complete example of how to manage four key strategic objectives
The Balanced Scorecard is a professional framework for measuring performance. All organizations have strategic objectives, but very often these goals are lacking a clear and specific measuring system.
The need for a measuring system is simple: if you don’t know how you did yesterday, you’ll never know what you have to work on today.
A measuring system determines how the organization is progressing toward their desired outcome. Without a clear measurement target, it’s really hard to tell if you’re on the right track or if you’ve taken a wrong turn. Additionally, if you’re not measuring anything specific, it’s impossible to pinpoint what it was that worked or where you went wrong.
The Balanced Scorecard method, which was developed by Kaplan and Norton, is designed specifically to help organizations define clear goals for the company and outline customized target measurements for success.
Essentially, the Balanced Scorecard method looks like the model below:
