What is a Balanced Scorecard?
The Balanced Scorecard model can be used to analyze the success of a company. The Balanced Scorecard combines the elements of strategy development and implementation, taking into account the interests of all relevant stakeholders of a company or organization.
The core idea of the Balanced Scorecard is the multi-perspective view of the company. The following four perspectives are considered:
- Finance
- Customers
- Internal business processes
- Learning and development
However, there may be contradictions and opposing developments between the different perspectives.
What are the advantages?
- Strategies can be presented in a uniform way
- Ideal corporate values can be converted into verifiable key figures
- Anticipatory control
What are the disadvantages?
- As the quantity of key figures increases, the Balanced Scorecard loses its informative value.
- A focus on individual key figures can lead to one-sided optimization.
- Without a balanced score system, activity-based costing results can be misleading.