Process improvement through performance measurement: the balanced scorecard methodology

Abstract

One of the hallmarks of leading‐edge organisations – be they public or private – has been the successful application of performance measurement to gain insight into, and make judgements about, the organisation, and the effectiveness and efficiency of its programmes, processes, and people. The balanced scorecard (BSC) is a widely used management framework for the measurement of organisational performance. The BSC concept suggests that the state of processes of an organisation can be best assessed by taking a “balanced” view across a range of performance measures. This article seeks to offer an insight into the BSC, the key features of the concept and issues that must be addressed in its implementation as a process improvement technique. Further, it identifies the BSC methodology as a means of deploying strategic direction, communicating expectations, and measuring progress towards agreed objectives.

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