Editing Balanced scorecard (section)

{{Short description|Strategy performance management tool}}
{{Strategy}}
A '''balanced scorecard''' is a strategy [[performance management]] tool – a well-structured [[report]] used to keep track of the execution of activities by staff and to monitor the consequences arising from these actions.<ref name="2GC_Survey">{{cite web|title=2GC Balanced Scorecard Usage 2020 Survey|date=21 May 2021 |url=https://2gc.eu/resources/survey-reports/2020-survey|url-status=live|publisher=2GC Active Management|archive-url=https://web.archive.org/web/20210524135124/https://2gc.eu/resources/survey-reports/2020-survey |archive-date=2021-05-24 }}</ref>

The term 'balanced scorecard' primarily refers to a performance management report used by a management team, and typically focused on managing the implementation of a strategy or operational activities. In a 2020 survey<ref name=2GC_Survey /> 88% of respondents reported using the balanced scorecard for [[strategy implementation]] management, and 63% for operational management. Although less common, the balanced scorecard is also used by individuals to track personal performance; only 17% of respondents in the survey reported using balanced scorecards in this way. However it is clear from the same survey that a larger proportion (about 30%) use corporate balanced scorecard elements to inform personal goal setting and incentive calculations.

The critical characteristics that define a balanced scorecard are:<ref name=What_is_BSC_FAQ>{{citation|url=https://2gc.eu/resources/faqs/what-is-a-balanced-scorecard|title=FAQ Answer: What is the Balanced Scorecard?|publisher=2GC Active Management|access-date=11 July 2017|archive-url=https://web.archive.org/web/20140620093448/http://2gc.eu/files/2GC-FAQ1-What_is_a_Balanced_Scorecard_140616.pdf|archive-date=20 June 2014}}</ref>
* its focus on the strategic agenda of the organization/coalition concerned;
* a focused set of measurements to monitor performance against objectives;
* a mix of financial and non-financial data items (originally divided into four "perspectives" - Financial, Customer, Internal Process, and Learning & Growth); and,
* a portfolio of initiatives designed to impact performance of the measures/objectives.<ref>{{Cite news|url=https://hbr.org/1992/01/the-balanced-scorecard-measures-that-drive-performance-2|title=The Balanced Scorecard—Measures that Drive Performance|last1=Kaplan|first1=Robert S.|date=1992-01-01|work=Harvard Business Review|access-date=2020-01-15|last2=Norton|first2=David P.|issue=January–February 1992|issn=0017-8012}}</ref>