The Balanced Scorecard Method Of Goal Setting

To ensure that your goals focus on all important aspects of the business, the Balanced Scorecard provide a good framework. It was developed as a conscious move from the traditional focus on only financial measures. Kaplan and Norton, the developers of the Balanced scorecard, advocated that one should not only focus on financial aspects when setting goals for your company but also on business processes, learning and growth and customer requirements.

The Balanced Scorecard

Click here to view a video that explains the introduction to balanced scorecards and measurement tools.

Businesses today have an increasing realisation of the importance of customer focus and customer satisfaction. If customers are not satisfied, they will eventually find other suppliers who will meet their needs. Poor performance in this area is a good indicator of a decline in the future, even though the financial picture at the moment may look good.

When doing strategic planning the focus is on external stakeholders such as customers, suppliers, advertising agencies and the recipients of Corporate Social Responsibility programmes. When doing operational planning, the focus is on internal stakeholders, such as internal suppliers, customers, and departments to be consulted with.