Page 37 - Performance Leadership
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26 • Part I A Review of Performance Management
organization to discern its strengths and areas in which improvement can
be made. Following this process of evaluation, improvement plans are
launched, which are monitored for progress. Organizations carry out this
cycle of evaluating and taking action repeatedly.
Balanced Scorecard
11
The balanced scorecard , developed by Kaplan and Norton, is a frame-
work to describe an organization’s strategy and to provide feedback as
to its effectiveness. The key message of the balanced scorecard is that
the performance of an organization should be structurally viewed from
four perspectives: financial, customer, business process, and learning/
growth (see Figure 2.3).
• Financial perspective: How are we perceived by our
shareholders? Without profits there is no supply of capital and
no sustainable business models. Having sound insight in
finance is important for every single economic entity.
• Customer perspective: How do our customers look at us? The
customer perspective ensures we not only measure an internal
F igur e 2.3
The Four Perspectives of the Balanced Scorecard
Financial
How are we
perceived by the
shareholders?
Customer Process
Vision,
How do our strategy, and How effective and
customers objectives efficient are our
look at us? processes?
Learning/Growth
How able are we to
learn and adapt?
