The Balanced Scorecard Focuses on Factors that Create Long-Term Value

Traditional financial reports look backwardReflect only the past: spending incurred and revenues earnedDo not measure creation or destruction of future economic valueThe Balanced Scorecard identifies the factors that create long-term economic value in an organization, for example:Customer Focus:  satisfy, retain and acquire customers in targeted segmentsBusiness Processes:  deliver the value proposition to targeted customersinnovative products and serviceshigh-quality, flexible, and responsive operating processesexcellent post-sales supportOrganizational Learning & Growth:develop skilled, motivated employees;provide access to strategic informationalign individuals and teams to business unit objectives