A balanced scorecard is a structured performance metric that is used to identify, improve, and control various internal business functions and their resulting outcomes. Companies utilize a balanced scorecard as a strategic planning framework to prioritize their initiatives, goods, and services, communicate about their objectives and schedule their everyday operations. Companies can use the scorecard to track and evaluate the effectiveness of their strategies to see how well they have done.
By adding other metrics that assess performance in areas like customer happiness and product innovation to financial indicators, the balanced scorecard approach tries to give stakeholders a more complete picture of an organization’s performance.
Also, See: Employee Value Proposition
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