3.2 Sustainability balanced scorecard
The Balanced Scorecard (BSC) was developed by Kaplan and Norton in 1992 as a management tool that supports the measurement of organisational performance in four perspectives: financial, customer, internal business processes, learning and growth. It creates a system of linked objectives, measures, targets and initiatives (‘strategy map’) that collectively describes how the strategy of an organisation can be achieved. Balanced scorecards have two main functions: Firstly the BSC measures the performance from a range of perspectives (whilst using a limited number of key performance indicators), and secondly the BSC guides the development, communication and implementation of an organisation’s strategy.