A system of performance measures, including nonfinancial measures, used to assess company and division manager performance is Balanced scorecard.
What is Balanced scorecard?
- A balanced scorecard is a strategy performance management tool, or a well-structured report, that managers may use to keep track of how the employees under their supervision are carrying out their duties and the results of those decisions.
- In a 2020 survey, 88% of respondents said they used the balanced scorecard to manage the implementation of a strategy and 63% said they used it for operational management.
- The phrase "balanced scorecard" primarily refers to a performance management report used by a management team, and typically this team is focused on managing operational activities.
- Although people can use the Balanced Scorecard to monitor their own performance, this practice is rare, with only 17% of survey respondents doing so.
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