Organizations often view their strategy from various perspectives to identify requirements for achieving success. The Balanced Scorecard, initially developed by Robert Kaplan and David Norton, is a framework that organizations use to assess, measure, and communicate performance across various perspectives. This helps to understand an organization as a “system” of elements that work together. More importantly, the Balanced Scorecard increases organizational alignment by focusing all employees on the organization’s strategic priorities.
The four commonly used perspectives are Financial, Customer, Internal Process, and Organizational Capacity (or Learning and Growth). This framework can be tailored if a unique industry or market needs to impact an organization. The Balanced Scorecard is used in the private, public, or social sectors.
