What is Balanced Scorecard (Concept)

Balanced Scorecard - BSC - Strategic Map
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O Balanced Scorecard, Also known as BSC, consists of a method that measures the performance of the company through indicators. It was developed by professors of Harvard Business School and is currently widely used in business management, mainly as a complement to the strategic planning. Its acronym stands for Balanced Performance Indicators.

Go back to:
What is and how to do strategic planning?


Why BSC?

If it was once based only on an evaluation model, today it is used as strategic management for companies and, therefore, is extremely important for its organization. This strategy is linked to four perspectives of the company: financial, customers, internal processes, in addition to learning and growth.

Balanced Scorecard - BSC - Outlook

Thus, the administrator must define the control variables (indicators) and goals so that the organization has the expected result over time (performance). In other words, the BSC finds the balance between short- and long-term goals, internal and external objectives that were outlined in strategic planning.

How to do the Balanced Scorecard

The BSC is divided into a few steps, which are:

What is Balanced Scorecard (Concept)

1 - Strategy and Designed Results

After having in mind all the goals (usually defined in strategic planning) and knowing where you really want to reach each item, it's time to list the indicators and make a projection through the months. These indicators will be divided within the 4 Balanced Scorecard perspectives (Finance, Clients, Internal Processes and Learning and Growth.

In the model below, for example, increasing revenue is measured as gross monthly revenue and should have the values ​​you are looking for over the months. The case of net income follows the same model and are within the main objectives of the Financial Perspective.

Balanced Scorecard - BSC - Designed Results

As we are talking about a one year planning, the most correct is to define what the results are planned for each of the months. From there, you go month by month completing the data and monitoring whether the results of the BSC are better or worse than planned.

2 - Actual Results and Balanced Scorecard (BSC)

Even if you make good predictions, the reality of your company has a great chance of being quite different from what you projected. So after filling out the actual results for each month you should analyze the overall success rate of your strategy and how each prospect meets. So we can define the difference between reality and the forecast that will be made in the BSC.

Balanced Scorecard - BSC - Results

Here you come exactly in the stage of the Balanced Scorecard where you can see in your spreadsheet the perspectives and all the indicators to get an idea of ​​what lies ahead.

3 - Strategic Map

After successfully completing all the first steps of the Balanced Scorecard that are more focused on measurement, it is time to see one of the most visually interesting parts of the BSC, the strategic map. In this step you can analyze a summary of your most important strategies and how they are influencing each other.

Here's an example:

Balanced Scorecard - BSC - Strategic Map

In this example, each perspective of the company's BSC has its own strategic objectives, that is, the financial seeks to increase revenues and reduce costs, while internal processes want to increase production capacity.

What is Balanced Scorecard (Concept)

4 - Graphics Panel

Finally, if you were able to delineate the strategy according to the 4 Balanced Scorecard perspective, it is time to analyze the results in the most visual way possible. This graphics panel is intertwined with the previous numbers and shows the perspective between the real and the designed so that you can better visualize your goals and outline the best results for the management of your company.

Balanced Scorecard - BSC - Balanced Scorecard Charts

See a comparison of planned with the actual result. Note that the realized only goes until a part of the year. This is because in our example we are measuring the results in "real time", ie it is as if we were in the month of June yet.

Balanced Scorecard - BSC - Planned vs. Performed Plans

See how this tool can facilitate the development of your company? With the BSC (Balanced Scorecard) Worksheet of Luz.vc, you can take control and use this management tool to find the best strategy for your organization. Get the BSC spreadsheet now and get to work!


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  1. Hi Deazalde, just allow the notifications of our blog that you will have news of news

  2. Good morning, I really liked the story. I would always like to send this material to me, so I'm better at it.

  3. Hi Silvia, everything good? What kind of strategic map do you look for? If you can tell me more I can see what we already have ready or what we can develop.

  4. Good day.
    How can I get strategic maps, because I work with Coaching and they are extremely important in the services.

  5. I read that the BSC has its perspectives interconnected, ie, LEARNING interconnects with INTERNAL PROCESSES and this in turn with CLIENTS and that, finally, interconnected to the FINANCIAL perspective. Could you post two or more practical examples of using the BSC with these interconnections? Thanks. Cris W.


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