The Balanced Scorecard (BSC) as defined by Kaplan and Norton is composed of four elements:

 

              > The Customer

              > Internal Business Processes

              > Innovation and Learning

              > Financial

 

The power of the BSC is the mission, vision, strategies and goals (BSC model).

The BSC is built on the principles of previous Total Quality as developed by Deming, Juran, Motorola,  and General Electric. The principles are:

 

!. J.M.Juran focus was on identifying the "vital few" that resulted in defects. E. Deming focused on the cause of variations. Both of these were essential elements of continuous improvement. However, they did not connect to the overall business strategy and financial measurement. BSC serves to fill that gap.

2. The previous methods customer feedback was that of returns and failures to delivery because of poor quality. The aerospace and defense customers were more involved in the processes than commercial customers. BSC moves the commercial customer inputs closer to that of the aerospace and defense customer.

3. The aerospace and defense customers were are involved with the products and services. This serves as catalyst for management involvement. BSC takes all managers to this deeper involvement with the customer.

 

Private Sector

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