A balanced scorecard is a measurement system for management that provides real insight into the status of a business or some part of it. Developed by Kaplan and Norton in the early 1990s, balanced scorecards provide a control system that helps ensure the right balance between different, and often times conflicting, perspectives. For example, an insurance company may increase profitability by offering incentives to claims assessors for taking a tough stance on payout, but will soon find dissatisfaction among its clients that may lead to lost business. Scorecards help ensure this balance and are an improvement over more traditional single dimension approaches that tend to be based purely on expense management and business growth.
examples of routine problems
of strategy execution. Typical examples include expenses, profitability, and revenue growth. Customer perspective indicates the opinions and behaviour of our target customer (or end user). This perspective normally includes measures such as customer satisfaction, loyalty, and acquisition. Process perspective reports the effectiveness of the critical-to-quality (CTQ) processes. The metrics here will be specific to the application, but typical indicators include process sigma value, throughput, and rework.