This video introduces Kaplan & Norton's Balanced Scorecard.

Kaplan and Norton's Balanced Scorecard approach encourages businesses to analyse and report performance based on four key perspectives financial, customers, internal processes and organisational capacity.

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VIDEO CHAPTERS
00:00 Introduction
00:15 What is the Balanced Scorecard?
00:31 Who are Kaplan & Norton?
00:58 Key features of the Balanced Scorecard
01:58 Four perspectives explained
04:30 Advantages of the Balanced Scorecard
05:29 Drawbacks of the Balanced Scorecard

VIDEO SUMMARY

This video is about Kaplan & Norton's Balanced Scorecard which is a framework used to measure and report business performance. It considers both financial and nonfinancial elements of a business.

Jim goes through:

What is the balanced scorecard and why was it created
The four perspectives of the balanced scorecard: financial, customer, internal processes, and organisational capacity
What KPIs (key performance indicators) can be used to measure each perspective
Advantages and disadvantages of using a balanced scorecard

Here are some key points from the video:

The balanced scorecard was created by Kaplan and Norton to provide a more comprehensive view of business performance than just financial performance.
The four perspectives of the balanced scorecard are financial, customer, internal processes, and organizational capacity.
Some KPIs that can be used to measure financial performance include return on investment (ROI) and operating profit margin.
Some KPIs that can be used to measure customer satisfaction include customer return rates and customer service ratings.
Some KPIs that can be used to measure internal processes include lead time for new products to market and unit costs.
Some KPIs that can be used to measure organizational capacity include employee retention rates and the flow of new business ideas.
Advantages of using a balanced scorecard include that it provides a broader view of business performance and that it can involve everyone in the business.
Disadvantages of using a balanced scorecard include that it can lead to having too many KPIs and that it can be difficult to get senior management to focus on nonfinancial perspectives.