The "Balanced Scorecard" is a management information system. A balanced scorecard shows how an organization performs by presenting measures in four important aria's:
1. Customers - internal and external.
2. Internal Business Processes - quality control, fulfilling public policy, alternate procurement practices.
3. Learning and Growth - information availability, quality workforce and environment, and excellent leadership.
4. Financial - minimizing administrative costs and maximizing contact cost avoidance.
As the term 'balanced' indicates this management information system focuses on more than the usual financial and operational indicators, for example customer and employee satisfaction. The balanced scorecard focuses on the "drivers" or lead indicators of future performance. Most traditional measures such as return on capital, operating profitability or economic value added are financial measures. Financial measures describe yesterday's strategy. If you want to know how yesterday's strategy worked, look at today's financials, and that means today's economic value added or today's return on capital. Today's financials reflect the investments an organization made a year ago. They also reflect the training an organization made a year ago and the advertising it did a year ago.
The balanced scorecard, as the name implies, achieves a balance between these lag indicators and the lead indicators that need to be focused on to make things happen. That's an important distinction. The balanced scorecard does not replace financial measurement. It doesn't replace economic value added. Rather, it complements it.
Metatude helps to automate the 'human input' for the balanced scorecard. With our software your you can automatically get new 'key performance indicators' on employee loyalty and customer satisfaction every month.