Balanced scorecard
The balanced scorecard is a contemporary performance measurement system for an organisation.
Traditionally, a company’s performance was measured only by using certain financial ratios like Return on Investment (ROI), Net Profit Ratio, Earning Per Share (EPS), working capital turnover, etc.
However, a company’s performance or success cannot be completely measured from a single view point (perspective). No doubt, financial performance is an important aspect, but certain other aspects
are also important. Financial performance includes customer satisfaction, efficiency of internalsystems, opportunity for learning in the organisation, corporate governance, etc.
"The balanced scorecard retains traditional financial measures. But financial measures tell the story
of past events, an adequate story for industrial age companies for which investments in long-term "The balanced scorecard retains traditional financial measures. But financial measures tell the story of past events, an adequate story for industrial age companies for which investments in long-term capabilities and customer relationships were not critical for success. These financial measures are
inadequate, however, for guiding and evaluating the journey that information age companies must make to create future value through investment in customers, suppliers, employees, processes,
technology, and innovation."