Kaplan & Norton's Balanced Scorecard

This video introduces Kaplan & Norton's Balanced Scorecard.

Kaplan and Norton's Balanced Scorecard approach encourages businesses to analyse and report performance based on four key perspectives - financial, customers, internal processes and organisational capacity.

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VIDEO CHAPTERS
00:00 Introduction
00:15 What is the Balanced Scorecard?
00:31 Who are Kaplan & Norton?
00:58 Key features of the Balanced Scorecard
01:58 Four perspectives explained
04:30 Advantages of the Balanced Scorecard
05:29 Drawbacks of the Balanced Scorecard

VIDEO SUMMARY

This video is about Kaplan & Norton's Balanced Scorecard which is a framework used to measure and report business performance. It considers both financial and non-financial elements of a business.

Jim goes through:

What is the balanced scorecard and why was it created
The four perspectives of the balanced scorecard: financial, customer, internal processes, and organisational capacity
What KPIs (key performance indicators) can be used to measure each perspective
Advantages and disadvantages of using a balanced scorecard

Here are some key points from the video:

The balanced scorecard was created by Kaplan and Norton to provide a more comprehensive view of business performance than just financial performance.
The four perspectives of the balanced scorecard are financial, customer, internal processes, and organizational capacity.
Some KPIs that can be used to measure financial performance include return on investment (ROI) and operating profit margin.
Some KPIs that can be used to measure customer satisfaction include customer return rates and customer service ratings.
Some KPIs that can be used to measure internal processes include lead time for new products to market and unit costs.
Some KPIs that can be used to measure organizational capacity include employee retention rates and the flow of new business ideas.
Advantages of using a balanced scorecard include that it provides a broader view of business performance and that it can involve everyone in the business.
Disadvantages of using a balanced scorecard include that it can lead to having too many KPIs and that it can be difficult to get senior management to focus on non-financial perspectives.

[rakeshicwa]

Clear and crisp lecture... It helps me to understand the concept very clearly.
#drawbacks are close to practice scenarios..

[tutoru-official]

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[GosiaSobczyk-Poland]

I love BSC and this video only confirms that BSC is a good tool, but it must be used wisely.

[allentian]

The video is helpful with clear explanations.

[Bahaj]

a big fan of ur channel .. it's really very helpful and easily addressed

[theworldthroughmyeyes]

This is super helpful for my strategy exams.Thanks

[tinnguyen]

Thank you so much for sharing this useful data! greatly appreciated.

[pantsharad]

Thanks a lot, very easy and simple illustration made it easy to understand.

[kristandeak]

This helped so much, very useful and explained great

[mdfayazuddin]

very helpful, can you tell me how much time will it take to implement BSC approximately, probably in a govt organisation

[shubhamchitte]

It was a very helpful video.. Thank you so much 🙏

[ntcuongct]

Dear friends, I have a question: I want to display the core competency of a company through strategy map, balanced scorecard. Could you help?. Thank you.

[mvishakh]

Thanks so much for making this video! very helpful.

[bartk]

could another drawback be bias? could managers choose KPI's that are in their favour since you can choose from a broad range of indicators?

[imylarsen]

is organisational capacity the same as the learning and growth perspective?

[mkwvr]

Brilliant explanation. Thanks for upload :)

[darwinmartinez]

hey sir kinda wondering where in that video can I find the growth perspective?

[evelynmejia]

which were the companies that participated in the Norton and Kaplan research?

[daniyalhameed]

Hey Jim,
Can you explain the difference between CSFs and KPIs ?
Thanks