The balanced scorecard (BSC) is a strategy performance management tool - a semi-standard structured report, supported by design methods and automation tools, that can be used by managers to keep track of the execution of activities by the staff within their control and to monitor the consequences arising from these actions. It is perhaps the best known of several such frameworks (it was the most widely adopted performance management framework reported in the 2010 annual survey of management tools undertaken by Bain & Company. Since its original incarnation in the early 1990s as a performance measurement tool, the BSC has evolved to become an effective strategy execution framework.
The BSC concept as put forth by Drs. Robert S. Kaplan and David P. Norton is now seen as a critical foundation in a holistic strategy execution process that, besides helping organizations articulate strategy in actionable terms, provides a road map for strategy execution, for mobilizing and aligning executives and employees, and making strategy a continual process.
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