Dear Govind,
BSC is the corporate performance management system used to underpin the organization's performance from four different dimensions:
Financial
Customer
Internal processes
Employee/Learning
These four dimensions provide accurate insights into how the organization is faring concerning planned objectives for a specific period, typically a year.
The first step is to identify objectives (assuming the vision/mission is clarified) for each of the four dimensions. Then, Key Performance Indicators (KPIs) or measures are developed to assess the achievement of the defined objectives. The measures will have a timeline or target, along with the necessary initiatives to be taken towards the same.
Here's an example:
Objective - Value proposition maximization
Measure - CSAT score
Target - 95% and above
Initiative - setting up the CSAT survey (design and implementation)
This is a simplistic definition. I hope this provides you with a basic understanding of the concept.
Regards,
Rajesh Balasubramanian
Senior Consultant - HRC
Ma Foi Consulting Solutions Limited, Chennai
+91 97909 21413