Balanced Scorecard (BSC)

Overview

The Balanced Scorecard translates strategy into objectives and measures across four perspectives, creating a cause-and-effect chain: Learning & Growth → Internal Processes → Customer → Financial. It answers "are we executing our strategy?" not just "are we profitable?"

When to Use

Trigger conditions:

• User needs to define strategic KPIs beyond financial metrics
• User wants to connect operational activities to strategic goals
• User building a strategy map or performance dashboard
• User says "our KPIs don't reflect our strategy" or "how do we measure execution"

When NOT to use:

• For one-time strategic analysis → use SWOT or Porter's
• For project-level OKRs → use OKR framework
• When only financial performance matters (rare)