Page 381 - ITIL® Foundation 3.15

The Balanced Scorecard
The Balanced Scorecard is designed to expand the traditional financial measurements of organizational success to include measures that point to expected future performance. Investments in customers, suppliers, employees, processes, technology and innovation all point to future success and, if only financial measures are considered, will all be missed in consideration of the actual value of a company or organization. The BSC was designed to translate the stated mission of an organization into a
set of defined performance measurements to provide a framework for a strategic measurement system. There are four perspectives on a balanced scorecard: financial, internal business processes, customers, and learning & growth. By identifying each of these measures separately, an organization will be better positioned to ensure that performance is aligned with the overall strategy (long-term) instead of solely concentrating on short term deliverables. By incentivizing executives, managers, and teams to adhere to long-term strategy, the risk of long-term failure is lessened.
Imagine attempting to teach your teenaged daughter to drive. You identify and explain the odometer, speedometer, fuel gauge, oil-pressure light, engine light, and various other measurement devices in the vehicle. If a parent were to have the learner only concentrate on the speedometer, the chance of other issues (long-term running out of gas, etc) happening without being caught would increase. Although speed is one of the most important issues in driving, the other measuring devices are there to give specific guidance or warning of specific conditions.
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