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Problem

Describe the relationships between and among the four central perspectives represented in the balanced scorecard and included in a strategy map: financial, customer, internal business process, and learning and growth.

Step-by-step solution

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Step 1/2

Balanced Score Card

Balanced score card is a framework that helps organizations to monitor the strategic processes. It combines the past performance with performance drivers.

Step 2/2

1. Internal business process: External business process totally depends on the performance of the internal business processes. Right internal business processes give company a competitive advantage in the market. Internal business process helps in formulating and implementing strategies to generate get maximum revenue.

2. Learning and growth: Learning and growth is second most important factor for a successful organization. Learning is a continuous process. Both management and employees have to learn according to new trends and customers’ requirements. This helps in determining and developing efficient ways for fulfilling the requirements of customers.

3. Customers: Customers are most important factor in any business. They are the source of the revenue. Company focusing on customers’ perspective, often formulates strategies by considering customers’ perspective on top priority. Even, if it comes at a cost.

4. Financial: Ultimate objective of all business is to earn profit and maximize wealth. Profits come from the business by selling products and service to the customers and increase the value of shareholder equity.