The idea of the Balance Scorecard (BSC) is to create feasible measurements that will give you a complete view of your company and that are linked to your general objectives as a company. Balanced Scorecard Management makes sure you can be able to measure economic internal processes that are decisive to make decisions at the right moment based on the knowledge and resources that substantiate your business model.

Suppose that a customer service relationship with your clients is the vital aspect of your company. Then, the success of your company lies in its ability to create a competitive advantage in term of customer relationship or CMR as the specialists call it too. Does a financial performance valuation such as return-on-investment or operating profits, will reflect how are your doing with your customer relationships?

While managers still require economic metrics to evaluate the overall condition of the company, they also need measures that could reflect more directly their strategic performance and long-term vision. The concept of the Balance Scorecard was developed with the aim to provide managers with this tool. An example of a Balanced Scorecard will provide you and easy and comprehensive framework that interpret the strategic objectives of the company into a coherent set of practical performance appraisals. Those assessments traverse across four different perspectives: The financial vision is complemented with a customer perspective, an internal communication perspective and an progressive innovation and continuous learning perspective.

The vision of the future of the company is at the center of the building process of the BSC presentation. The sets of evaluating criteria developed in each of the perspectives are direct translations of the strategic objectives of the company. Therefore, business managers do not only have a clear picture of the past performance of the company. They now also have the means to evaluate without a balanced scorecard sample (of course this is for someone who is developing his/her BSC know-how) where its stands in term of its important objectives, and how well positioned it is to assume future challenges.