What is the balanced scorecard?

Newer models to measure the performance of companies and achieve inner balance

The balanced scorecard (BSC) is a strategy 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.

A method to monitor organization performance against strategic goals

A Balanced is a management system that is used extensively in business and industry, government and non-profit organisation to align activities to the vision & strategy of the organization and also improve internal and external communications against strategic goals.
Or In other word we can say that, It is a strategic planning that is used for organization performance against strategic goals

The balanced scorecard is a business management tool that translates strategy or objectives into action.
The outcome is a set of performance measures to hold accountable departments within a company for example: Finance- Is the projected level of revenue being met/exceeded? Customer Service- Is the customer base increasing quarterly? What percentage of customers leave the company? Human Resources- Has the average "Cost Per Hire" rate been reduced? Has the turnover rate been reduced? Marketing- Can we measure a return of investment/profit margin related to a marketing campaign?

A Balanced Scorecard defines what management means by "performance" and measures whether management is achieving desired results.
The Balanced Scorecard translates Mission and Vision Statements into a comprehensive set of objectives and performance measures that can be quantified and appraised.
These measures typically include the following categories of performance: Financial performance (revenues, earnings, return on capital, cash flow) Customer value performance (market share, customer satisfaction measures, customer loyalty) Internal business process performance (productivity rates, quality measures, timeliness) Innovation performance (percent of revenue from new products, employee suggestions, rate of improvement index) Employee performance (morale, knowledge, turnover, use of best demonstrated practices) Usage and effectiveness among survey respondents What Balanced Scorecards do: Articulate the business's vision and strategy Identify the performance categories that best link the business's vision and strategy to its results (e.g., financial performance, operations, innovation, employee performance) Establish objectives that support the business's vision and strategy Develop effective measures and meaningful standards, establishing both short-term milestones and long-term targets Ensure companywide acceptance of the measures Create appropriate budgeting, tracking, communication, and reward systems Collect and analyze performance data and compare actual results with desired performance Take action to close unfavorable gaps