> For the complete documentation index, see [llms.txt](https://www.designreference.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://www.designreference.xyz/leadership/strategy/organisational-alignment/balanced-scorecard.md).

# Balanced Scorecard

The Balanced Scorecard is a strategic management tool that helps organisations track and measure their performance across various dimensions, not just financial ones. By combining four perspectives, the Balanced Scorecard provides a comprehensive view of an organisation's performance and helps to align strategic goals with operational activities. 

It also helps to ensure that organisations are not solely focused on short-term financial performance, but are also investing in long-term growth and sustainability. 

It aims to provide a balanced view of an organisation's overall health by considering four key perspectives:

1. **Financial Perspective**\
   This perspective focuses on the traditional financial measures of an organization's performance, such as profitability, revenue growth, and return on investment. It answers the question, "How do we look to shareholders?"
2. **Customer Perspective**\
   This perspective focuses on customer satisfaction, retention, and acquisition. It answers the question, "How do customers see us?"
3. **Internal Process Perspective**\
   This perspective focuses on the internal processes that drive the organization's performance, such as operational efficiency, product quality, and innovation. It answers the question, "What must we excel at?"
4. **Learning and Growth Perspective**\
   This perspective focuses on the organisation's ability to learn and grow, including employee skills, knowledge, and motivation. It answers the question, "Can we continue to improve and create value?"

#### Further Viewing

{% embed url="<https://www.youtube.com/watch?v=C0JZdyb6hZE>" %}

#### Further Reading

{% embed url="<https://bettermarketing.pub/measure-what-matters-58320dc3582f>" %}

{% embed url="<https://online.hbs.edu/blog/post/balanced-scorecard>" %}


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