ABSTRACT
The balance scorecard (BSC) is precisely such a strategic management system that enables an enterprise to monitor and manage the execution of its value-adding and value-creating strategies effectively. The BSC aims to provide a balance between the external and internal measures of performance, between short- and long-term objectives, between financial and nonfinancial measures, and between lagging and leading indicators. The BSC retains the financial perspective of the company's performance that is essentially based on past performance and is valid for short-term performance in the immediate future. In the BSC framework, the financial perspective enables a reality check of the strategic management activity of the enterprise. This chapter describes how a company might use the Balanced Scorecard to measure the impact of PI as part of its overall organizational performance. The reason for the implementation of the performance measures and related reporting in the financial services company was to support the strategic initiatives of the company.
