What is "bsc?

BSC stands for Balanced Scorecard. It's a strategic 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.

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:

• Learning and Growth: This perspective includes employee training and corporate cultural attitudes related to both individual and corporate self-improvement. In a knowledge-worker organization, people – the only repository of knowledge – are the main resource. In the current climate of rapid technological change, it is becoming increasingly important to continually train and learn. Metrics can be put into place to guide managers in focusing training funds where they can help the most.

• Business Processes: This perspective refers to internal business processes, including strategic management, operations management, and customer management. Metrics based on this perspective allow the managers to know how well their business is running, and whether its products and services conform to customer requirements. These metrics have to be carefully designed by those who know these processes most intimately.

• Customer: Recent management philosophy has shown an increasing realization of the importance of customer focus and customer satisfaction in any business. These are leading indicators: if customers are not satisfied, they will eventually find other suppliers that will meet their needs. Poor performance from this perspective is thus a leading indicator of future decline, even though the current financial picture may look good.

• Financial: This perspective includes metrics such as cash flow, sales growth, and operating income. While these metrics are lagging indicators—reflecting past decisions—they are the key indicators used by shareholders. These measure results, but do not describe how to achieve the results.