Back To Glossary

Performance Scorecard

A performance scorecard is a graphical depiction of an entity's progress toward a certain objective or goals over time, such as an enterprise, an individual, or a business unit. Performance scorecards are extensively utilized in a variety of businesses, both public and commercial.

To track the success of any corporate goal, performance scorecards can be utilized independently of the balanced scorecard technique. Targets and key performance indicators are essential ideas in scorecards (KPIs). KPIs are measures that are used to assess elements that are critical to an organization's success, whereas targets are precise objectives for those indicators.

Scorecards were created for “for-profit” businesses, but they were eventually adopted for nonprofits and government institutions. Its purpose is to assess a company's intellectual capital, which includes training, skills, expertise, and any other private information that provides it a competitive edge in the market. By isolating four discrete areas that need to be reviewed, the balanced scorecard methodology rewards excellent behavior in a business.