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Balanced Scorecard
The Balanced Scorecard is a framework that is used as a performance management tool. It is used as a structured “summary” of financial and non-financial measures (Key Performance Indicators or KPI’s) and the associated standards and targets.
These are usually grouped according to the following pillars:
- Finance
- Customer Service
- Internal Business processes
- People
When the Scorecards are reviewed it is possible to see where targets are being met, exceeded or not being met. This enables a business to effectively focus attention on relevant issues to improve performance where it is needed.
Balanced Scorecards are about choosing pertinent measures and targets, and are used in conjunction with strategic planning systems, business and operations reports, and other tools. While most operations/ persons in a business will have targets in each of the above “pillars”, in a well designed BSC it is easy to see where the focus for a particular operation/ individual should be.
We use the Balanced scorecard as a flexible and effective framework in our Job Profiling methodology.
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