Balanced Scorecard

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DEFINITION of 'Balanced Scorecard'

A performance metric used in strategic management to identify and improve various internal functions and their resulting external outcomes. The balanced scorecard attempts to measure and provide feedback to organizations in order to assist in implementing strategies and objectives.

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BREAKING DOWN 'Balanced Scorecard'

This management technique isolates four separate areas that need to be analyzed: (1) learning and growth, (2) business processes, (3) customers, and (4) finance. Data collection is crucial to providing quantitative results, which are interpreted by managers and executives and used to make better long-term decisions.

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