LINKING THE BALANCED SCORECARD TO STRATEGY (REPRINTED FROM THE BALANCED SCORECARD)

The Balanced Scorecard was developed to measure both current operating performance and the drivers of future performance. Many managers beli eve they are using a Balanced Scorecard when they supplement tradition al financial measures with generic, non-financial measures about custo mers, processes, and employees. But the best Balanced Scorecards are m ore than ad hoc collections of financial and nonfinancial measures. Th e objectives and measures on a Balanced Scorecard should be derived fr om the business unit's strategy. A scorecard should contain outcome me asures and the performance drivers of those outcomes, linked together in cause-and-effect relationships.