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The Balanced Scorecard (BSC) contributes to a company's profitability by providing a comprehensive framework for measuring performance from multiple perspectives: Financial, Customer/Stakeholder, Internal Process, and Organizational Capacity. By balancing financial measures with measures of customer satisfaction, internal processes, and organizational capacity, the BSC helps companies align their activities with their strategy, improve internal and external communications, and monitor their performance against strategic goals. This can lead to improved efficiency, effectiveness, and profitability.
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Financial (aka Stewardship) – this perspective analyzes an organization's financial performance and financial resources utilization. Customer/Stakeholder – this perspective analyzes organizational performance from the customer or key stakeholders point of view. Internal Process – this perspective analyzes an organization's performance in relation to the product/ service quality and efficiency. Organizational Capacity (aka Learning and Growth) – this perspective analyzes key aspects of progress performance, such as human resources, infrastructure, technology, culture, etc.
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Need a way to streamline your strategic planning process? The Balanced Scorecard (BSC) is a tried-and-true method used by some of the most successful...
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