The balanced scorecard is a performance measurement approach that uses both financial and nonfinancial measures to evaluate all aspects of a company’s operations in an integrated fashion. The performance measures are linked in a cause-and-effect fashion to ensure that they all tie to the company’s overall objectives.
Balanced scorecard is a management control system that enables companies to clarify their strategies, translate them into action, and provide quantitative feedback as to whether the strategy is creating value, leveraging core competencies, satisfying the company’s customers, and generating a financial reward to its share holders.
Balanced scorecard is an enterprise performance management system that links strategy to measurement by asking firms to set goals and subsequent performance metrics in four areas: customer, internal, innovation and learning, and financial.