IT Professional  Toolkit

           In order to develop the successful IT strategy, the balance scorecard is one of the best practices to build the IT strategy. The Balance scorecard help the management team to measures the performance of the business. The balanced scorecard is based on four fundamental perspectives: financial, customer, internal business process, and learning and growth:

 

 

•  The financial perspective asks how the organization should appear to shareholders so that  the company can succeed financially. This perspective indicates if the business is improving  the bottom line, measuring items such as profitability and shareholder value. Financial  objectives reflect economic consequences of actions already taken in the other    perspectives.

 

• The customer perspective asks how an organization should appear to customers to achieve the organization’s vision. Customer objectives identify customer and market segments where the business would compete and what performance would be expected for these targeted segments. The scorecard focuses on customer concerns primarily in four categories: time, quality, performance and service, and cost.

 

• The internal business perspective asks what business processes the organization should excel at to satisfy shareholders and customers. This perspective measures the internal business processes, core competencies, and technologies that would satisfy customer needs.

 

• The innovation and learning perspective asks how the organization would sustain its ability to change and improve to achieve the organization’s vision. The learning and growth perspective identifies the organization’s infrastructure needed to support the other perspectives’ objectives. This perspective measures a company’s ability to innovate, improve, and learn, such as the ability to launch new products (Caudle, 2008, p. 2).