BSC (Balanced Scorecard)

Balanced Scorecard / IT-BSC

1. Overview of BSC, a Multi-Dimensional Performance Management Framework

    flowchart LR
    A["Finance-centered performance measurement"] -- "Shift to multi-dimensional, balanced performance management" --> B["BSC Framework"]

Definition: A strategic management system that moves beyond finance-centered performance measurement to manage an organization’s strategy in a balanced way, incorporating non-financial perspectives such as customer, internal process, and learning and growth.

Characteristics:
(Visualizing causality) Clarifies strategic logic by visualizing the causal relationships between goals using a Strategy Map.
(KPI linkage) Derives key performance indicators (KPIs) for each of the four perspectives, establishing a foundation for quantitative performance measurement.
(Strategy execution) Strengthens organization-wide strategic alignment by breaking down the vision and strategy into actionable units at the field level.

2. The Four Perspectives of BSC and the IT-BSC Extension Model

B. Evolution of Performance Management Frameworks (BSC)

    flowchart LR
    subgraph A["Traditional Performance Management"]
        A1["Finance-metric centered<br/>(focus on short-term results)"]
    end

    subgraph TRANS["Evolution Perspective"]
        direction TB
        T1["Strategy map-based linkage"]
        T2["Four perspectives (financial/customer/process/learning)"]
    end

    subgraph B["Strategic Management System"]
        B1["Balanced performance management (BSC)<br/>(strengthened strategy execution)"]
    end

    A -- "Overcoming the limits of a financial view" --> TRANS
    TRANS --> B

Perspective	Key Question	Example Metrics
Financial	Maximizing shareholder value	ROI, revenue growth rate, net profit, TCO reduction
Customer	Customer satisfaction and market share	Customer satisfaction, market share, new customer acquisition rate
Internal Process	Optimizing core processes	Cycle time, defect rate, productivity metrics
Learning and Growth	Organizational capability and infrastructure	Employee proficiency, turnover rate, information system utilization, organizational culture

B. IT-BSC: A Performance Management Model for IT Organizations

    flowchart TD
  ITBSC["IT-BSC Perspectives"]
  C1["Corporate Contribution"]
  C2["User Orientation"]
  C3["Operational Excellence"]
  C4["Future Orientation"]

  ITBSC --> C1
  ITBSC --> C2
  ITBSC --> C3
  ITBSC --> C4

  C1 --> D1["IT investment performance"]
  C2 --> D2["User satisfaction"]
  C3 --> D3["Operational efficiency"]
  C4 --> D4["Capability building"]

  style ITBSC fill:#1E3A5F,color:#fff

IT-BSC Perspective	Corresponding BSC Perspective	Key Management Items
Corporate Contribution	Financial perspective	Return on IT investment, budget compliance rate
User Orientation	Customer perspective	Service availability, help desk satisfaction
Operational Excellence	Internal process	Incident recovery time, number of security incidents
Future Orientation	Learning and growth	IT training hours, rate of new technology adoption

3. Expected Effects and Success Strategies for BSC Adoption

Category	Key Expected Effect	Application and Practical Use
Strategic alignment	Strengthening execution of the vision	Synchronizing sub-organization KPIs with enterprise strategy using the strategy map
Balanced management	Balancing short- and long-term performance	Securing a balanced view between financial results and non-financial drivers
Continuous improvement	Performance feedback loop	Driving business process improvement through periodic KPI monitoring

VRIO Analysis BSC 2.0