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 taken into account:
- Finances
- 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 uniformly
- Ideal corporate values can be converted into verifiable key figures
- Predictive control
What are the disadvantages?
- As the number of key figures increases, the balanced scorecard becomes less meaningful.
- Concentrating on individual key figures can lead to one-sided optimization.
- Without a balanced score system, the results of activity-based costing can be misleading.
