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.
financial kpi reporting software
pertinent aspect of the financial perspective (at least to longer term planning) is that of capitalization: that is, how many resources are being consumed to provide a service. While over-capitalization cannot be addressed overnight, a downward trend provides a good indicator of cost savings. Candidate metrics for the finance perspective include: billing, consumption, performance to budget, savings, COPQ, penalty payments, asset depreciation costs, ROI, and profitability (by user/customer). User