A balanced scorecard (BSC) is a balanced system of key performance indicators and a management tool for balanced strategic thinking that can be used to support both the design and implementation of a corporate strategy. Balance is achieved by taking various strategy-relevant dimensions into account when deriving the key performance indicators. The integrative power of a BSC, as postulated by Kaplan and Norton, can be understood in particular as follows:
- strategic management is based on a broad information base that incorporates a variety of perspectives
- short-term and long-term orientation are possible at the same time,
- monetary and non-monetary key figures are taken into account and linked with each other,
- key performance indicators and performance drivers that are central to the success of the strategy are identified and thus become communicable, and
- the internal and external performance perspectives are combined into a holistic approach.
The stated goal of developing a balanced scorecard is therefore to provide a key performance indicator system and management tool that also incorporates long-term success potential in order to categorize different types of corporate value contributions that give rise to corporate synergies.
Source: Fuchs, W. (2021). Tourismus, Hotellerie und Gastronomie von A bis Z. Walter de Gruyter.