The Strategic Balanced Scorecard (SBS) is a management framework that helps organizations to measure and manage their performance across multiple perspectives.
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Financial perspective: focus on financial outcomes such as revenue growth, profitability, and shareholder value. It includes metrics such as sales growth, return on investment (ROI), and cash flow.
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Customer perspective: focus on satisfaction and loyalty. It includes metrics such as customer retention rates, customer satisfaction scores, and net promoter scores.
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Internal business processes perspective: focus on the processes that drive business success. It includes metrics such as process cycle times, defect rates, and inventory turnover.
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Learning and growth perspective: focus on the organization's ability to innovate and improve over time. It includes metrics such as employee satisfaction, employee turnover, and training and development programs.
The scorecard helps align strategy, objectives, and metrics across these four perspectives. This helps align resources and initiatives with strategic priorities.
In addition, the scorecard also helps organizations to communicate their strategy and objectives to investors, employees, and other stakeholders.