Balance scorecard

The BSC is a revolutionary tool to mobilize people towards full fulfillment of the mission by channeling the specific energies, skills and knowledge of the people in the organization towards the achievement of long-term strategic goals.

It allows both to guide current performance and to point to future performance. It uses measures in four categories - financial performance, customer knowledge, internal business processes and learning and growth - to align individual, organizational and trans-departmental initiatives and identifies entirely new processes to meet customer and shareholder objectives.

The BSC is a robust learning system to test, get feedback and update the organization's strategy. It provides the management system for companies to invest in the long term - in customers, employees, development of new products and systems - rather than in managing the last line to pump short-term profits.

look at the organization from four perspectives

• Development and Learning: Can we continue to improve and create value?
• Internal Business: What should we excel?
• Customer: How do customers see us?
• Financial: How do we see ourselves in the eyes of shareholders?

The CMI is therefore a strategic management system of the company, which consists of:

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• Formulate a consistent and transparent strategy.
• Communicate the strategy through the organization.
• Coordinate the objectives of the various organizational units.
• Connect objectives with financial and budget planning.
• Identify and coordinate strategic initiatives.
• Measure in a systematic way the realization, proposing opportune corrective actions.

The financial indicators are based on the company's accounting, and show the company's past. The reason is that the accounting is not immediate (when issuing a supplier an invoice, it is not automatically posted), but that closures must be made to ensure the compilation and consistency of the information. Due to these delays, some authors maintain that running a company paying attention only to financial indicators is like driving at 100 km / h looking in the rearview mirror.

To achieve the financial performance that a company desires, it is essential that it has loyal and satisfied customers. With this objective in mind, relations with customers and the expectations they have about business are measured. In addition, this perspective takes into account the main elements that generate value for customers by integrating them into a value proposition, in order to focus on the processes that are most important to them and that most satisfy them.

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