What do you mean by balanced scorecard term?

Balance scorecard is primarily used for performance analysis and measurement.It is a performance management tool that holistically captures an organization’s performance from several vantage points (e.g., sales results vs. inventory levels) on a single page.

Balanced Scorecard is based on the stakeholder approach. According to the Balanced Scorecard, if a business is to be considered successful, it must satisfy the requirements of three stakeholders - investors, customers and employees.

  • The investors want financial performance, measured by economic profitability, market value and cash flow.

  • The customers, who use the products or services of the firm, want quality products, measured by market share, customer commitment, customer retention, etc.

  • The employees of a firm want a good working condition.