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Balanced scorecard

Balanced scorecard is a strategic performance framework that organises measures into four perspectives: financial, customer, internal process, and learning and growth.

Also known asBSC

ByHoang TruongUpdated

FrameworkBalanced scorecard

See it move

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A four-step flow moves from Learning and growth — covering skills, systems, and culture — upward through Internal processes such as operations and innovation, which drive Customer outcomes including satisfaction, retention, and market share, which in turn convert into Financial results such as ROI, profit margin, and EVA. Each step is a cause of the next, so strengthening the foundational learning layer ultimately moves the financial top of the scorecard.

Where it fits
SubjectManagerial AccountingCoreTopicStrategic Performance & the Balanced ScorecardCore

Check yourself

PracticeCORE

The balanced scorecard links its four perspectives through cause-and-effect logic. Which of the following correctly describes that causal chain?

Select an answer to check your understanding.