What is Balanced Scorecard?

Legal Definition
The balanced scorecard (BSC) is a strategy performance management tool – a semi-standard structured report, supported by design methods and automation tools, that can be used by managers to keep track of the execution of activities by the staff within their control and to monitor the consequences arising from these actions.

The phrase 'balanced scorecard' is commonly used in two broad forms:

  1. As individual scorecards that contain measures to manage performance, those scorecards may be operational or have a more strategic intent; and
  2. As a Strategic Management System, as originally defined by Kaplan & Norton.

The critical characteristics that define a balanced scorecard are:

  • it focus on the strategic agenda of the organization concerned
  • the selection of a small number of data items to monitor
  • a mix of financial and non-financial data items.
-- Wikipedia
Legal Definition
When past good performance is used to predict future performance. The cards do not take in to consideration the environment.