The four perspectives of the Balanced Scorecard are:
- Financial Perspective: This perspective focuses on financial performance measures such as revenue growth, profitability, return on investment, and cash flow.
- Customer Perspective: This perspective focuses on measures of customer satisfaction, retention, loyalty, and market share.
- Internal Processes Perspective: This perspective focuses on measures of internal efficiency, productivity, and quality. It seeks to identify and improve critical internal processes that directly impact customer satisfaction and financial performance.
- Learning and Growth Perspective: This perspective focuses on measures of employee training and development, innovation, and knowledge management. It seeks to build and sustain the organization’s intellectual capital and capacity for innovation and improvement.
Each perspective provides a different view of the organization’s performance, and all four perspectives must be considered together to create a comprehensive understanding of the organization’s overall success. The BSC encourages organizations to balance financial and non-financial measures across multiple perspectives, which promotes a more holistic and balanced view of organizational performance.