The balanced scorecard is a performance management tool - a semi-standard structured report, supported by design methods and automation tools, that can be used by managers to keep track of the execution of activities by the staff within their control and to monitor the consequences arising from these actions.

In 1987 the balanced scorecard was used for the first time. In 1992 the balanced scorecard became well known by an article of Robert S. Kaplan and David P. Norton, “The balanced scorecard—measures that drive performance”.

The balanced scorecard suggests that we view the organization from four perspectives, and to develop metrics, collect data and analyze it relative to each of these perspectives:

  1. The Learning & Growth Perspective

  2. The Business Process Perspective

  3. The Customer Perspective

  4. The Financial Perspective