Balanced Score Card - BSC

DEFINITION of 'Balanced Score Card - BSC'

A strategic planning and management system used extensively in business and by organizations worldwide. Benefits of the system include increasing focus on results, aligning business activities with organization strategy and improving performance and communications.


The balanced score card proposes that the organization should be viewed from four perspectives, with metrics developed, data collected and analyzed for each of them. These four perspectives are: Financial, Customer, Internal Business Processes and Learning and Growth.

BREAKING DOWN 'Balanced Score Card - BSC'

The first balanced scorecard was created by independent consultant Art Schneiderman at Analog Devices in 1987. The concept was popularized by Dr. Robert Kaplan and David Norton in the early 1990s.

RELATED TERMS
  1. Competitive Advantage

    An advantage that a firm has over its competitors, allowing it ...
  2. First Mover

    A form of competitive advantage that a company earns by being ...
  3. Economic Moat

    The competitive advantage that one company has over other companies ...
  4. Soft Economic Moat

    A type of economic moat (or competitive advantage) that is based ...
  5. Core Competencies

    The main strengths or strategic advantages of a business. Core ...
  6. Attrition

    The reduction in staff and employees in a company through normal ...
Related Articles
  1. Active Trading

    Competitive Advantage Counts

    What's the best indicator of a company's future success? Its ability to succeed when others fail.
  2. Active Trading

    Economic Moats: A Successful Company's Best Defense

    Find out why some companies thrive while others flounder.
  3. Active Trading

    The Best CEOs Listen To The Street

    Studies show that transparency and listening to the market are a winning combination for CEOs and the companies they run.
  4. Investing

    3 Secrets Of Successful Companies

    Make smart investments by spotting up-and-coming success stories early.
  5. Term

    The History and Purpose of TQM

    Total quality management explores processes to enhance quality and productivity.
  6. Executive Compensation

    How Restricted Stocks and RSUs Are Taxed

    Many firms pay a portion of their employees’ compensation in the form of restricted stock or restricted stock units.
  7. Budgeting

    Tools for Finding the Right Loan or Grant for Your Small Business

    Learn more about some of the best tools, resources and organizations available to connect small business owners with business funding opportunities.
  8. Budgeting

    Financial Literacy Tools for Small Business Owners

    Learn more about where you can access some of the best free financial literacy resources and tools available for small business owners.
  9. Economics

    Pinterest:  Bringing the Ca-Ching to the Retail Register

    Pinterest is more than just an online scrapbooking platform. It's a unique form of social media that spreads product awareness and increases retail sales.
  10. Economics

    What Does Triage Mean?

    The term triage refers to the practice of prioritizing work or customers into different levels so that the most urgent issues are handled first.
RELATED FAQS
  1. What is the difference between a Debit Order and a Standard Order in a bank reconciliation?

    While both debit orders and standard orders represent recurring transactions that must be considered in bank reconciliations, ... Read Full Answer >>
  2. How can a company execute a tax-free spin-off?

    The two commonly used methods for doing a tax-free spinoff are either to distribute shares of the spinoff company to existing ... Read Full Answer >>
  3. How often should a small business owner go through a bank reconciliation process?

    Small business owners should go through the bank reconciliation process at least monthly, and many business consultants recommend ... Read Full Answer >>
  4. How is the marginal cost of production used to find an optimum production level?

    The marginal cost of production can be tracked to show the optimal production level where per-unit production cost is lowest ... Read Full Answer >>
  5. How do companies with a large product portfolio use BCG Analysis?

    BCG analysis is used to evaluate an organization's product portfolio in sales planning and marketing. It is specifically ... Read Full Answer >>
  6. What are the typical ratios for a reverse stock split?

    Common share swap ratios used in a reverse stock split are two-to-one, 10-to-one, 50-to-one and 100-to-one. There is no set ... Read Full Answer >>
Hot Definitions
  1. Liquidation Margin

    Liquidation margin refers to the value of all of the equity positions in a margin account. If an investor or trader holds ...
  2. Black Swan

    An event or occurrence that deviates beyond what is normally expected of a situation and that would be extremely difficult ...
  3. Inverted Yield Curve

    An interest rate environment in which long-term debt instruments have a lower yield than short-term debt instruments of the ...
  4. Socially Responsible Investment - SRI

    An investment that is considered socially responsible because of the nature of the business the company conducts. Common ...
  5. Presidential Election Cycle (Theory)

    A theory developed by Yale Hirsch that states that U.S. stock markets are weakest in the year following the election of a ...
Trading Center