Balanced scorecard
Definition
A strategic planning and management tool that is used extensively in business and industry, government, and nonprofit organizations worldwide to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals ( http://balancedscorecard.org/Resources/About-the-Balanced-Scorecard Balanced scorecard institute) (Last published: A business model usedas a tool to measure organizational performance against both short and long-term goals).
Description
This model is designed to focus attention on the factors that most help business strategists and so, alongside financial measures, offers means of measuring internal processes and employee learning. Some organizations in the nuclear industry use the ‘balanced scorecard’ model in setting and measuring knowledge management strategies.
Balanced Scorecard metrics have gained wide acceptance in determining financial performance for organisations over the last 15-20 years. Its intention is to provide a clear indication as to what organisations should measure to balance the financial performance. It enables organisations to clarify their strategy and translate it into action. Balanced Scorecard principles can be applied to knowledge management to provide metrics in a framework that is familiar to an organisation that has implemented it for their financial assessment. The four quadrants [financial (could also be efficiency in a knowledge management context), client, learning and growth, and internal business processes] of the Balanced Scorecard are applied to knowledge management by asking the four questions in each quadrant:
- Objectives: where do you want to get to?
- Initiatives: how are you going to get there?
- Measures: how do you know you are progressing towards your destination?
- Targets: how do you know when you have arrived?
