What Exactly Is a Balanced Scorecard?

This chapter describes the Balanced Scorecard concept by examining its origins, tracing its path to success and outlining the critical concepts that bring the system to life. Specific topics include: Origins of the Balanced Scorecard concept A thorough review of the four perspectives that comprise the system An introduction to strategy maps—powerful communication tools that describe and articulate strategy Performance measures Targets Strategic initiatives The use of cause and effect modeling to tell a strategic story Key Balanced Scorecard questions and answers The importance of terminology in creating an effective Balanced Scorecard The chapter clears up misconceptions regarding the Balanced Scorecard and demonstrates that it is a necessary performance system that should be utilized by all organizations.