It is mandatory for every organization to measure all key performance parameters to constantly focus on performance and find opportunities to improve. It provides a competitive edge in the market place to sustain and grow.

One of the management tool vogue in industry since 9o’s and successfully used by many industries is “Balanced Score Card”.

As the name suggests, it balances: financial and non-financial measures, short and long-term measures, performance drivers (leading indicators) with outcome measures (lagging indicators), just sufficient data to give a complete picture of organizational performance, leads to strategic focus and organizational alignment.

The tool is a strong enabler to:

  • achieve strategic objectives
  • measure all key performance parameters critical to long- and short-term success of organization
  • align customer priorities and expectations with business
  • track progress
  • evaluate process changes
  • continually improve
  • increase accountability throughout organization

Some of the typical measures under each dimension are:

  1. Financial – ROI, margins, profitability, COGM, COGS, YOY improvement, quarterly sales etc;
  2. Customer – Customer satisfaction, repeat sales to existing customers, Time to resolve customer complaints etc;
  3. Internal process – business excellence rating, effectiveness of internal processes, Conformance of products/services to customer needs, focus on process improvement etc;
  4. Learning &growth – Training man-days/employee, % completion of development plans, employee satisfaction score, % roles> 3 years on same role, safety data on accidents/incidence etc;


In conclusion, balanced Score card is a feed back tool to be effectively used to consistently strive for performance improvement. It should be used as a dash board so that strong visibility is created across organization to create awareness on progress against plan to actively engage all levels of employees.

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