Balanced Scorecard Concepts, Technology, and Applications
Ricardo Colomo Palacios (Universidad Carlos III, Spain), Juan Miguel Gómez Berbís (Universidad Carlos III, Spain) and Ángel García Crespo (Universidad Carlos III, Spain)
Copyright: © 2008
The balanced scorecard (BSC) harnesses the potential of checking and verifying the status of a company by evaluating and carefully assessing strategic aspects beyond the purely financial indicators. The significant impact of the BSC from a business standpoint has brought critical mass in use and the emergence of a number of technologies that will make a technology-supported BSC a reality. This article presents an overview of the concept and its history, evolution, major applications, and implications with a particular emphasis in decision making and decision support technologies.
Key Terms in this Chapter
Balanced Scorecard: This is a framework that helps top management to select a set of measures that provide an integrated look at a company by dividing a list of measurable items into four perspectives: financial, customer, internal business processes, and learning and growth.
Performance Management: It is a process by which an enterprise involves the whole of its resources in improving organizational effectiveness in the accomplishment of enterprise mission and goals.
IT Balanced Scorecard: This is a framework that helps IT management to select a set of measures that provide an integrated look at an IT department by dividing a list of measurable items into four perspectives: user orientation, operational excellence, business contribution and future orientation.
Critical Success Factors: These are elements that are necessary for an organization or project to achieve its mission.
Balanced Scorecard Causal Model: This is a model that describes the cause-effect relationship of an organization’s strategy.
Key Performance Indicators: These are financial and nonfinancial metrics used to quantify objectives to reflect the strategic performance of an organization.