Balanced scorecard for evaluating franchisees
Overview and brief history
The basic idea of the Balanced Scorecard (BSC) is to focus the organisation on performance
measures and implementing the current strategy. The BSC comprises measures from
financial, customer, internal processes and learning and growth perspectives. The aim is to
avoid focusing only on short term financial measures. The BSC enables managers to focus
their efforts and to understand the links between the four key areas.
The BSC technique was developed by Kaplan and Norton (1992, 1996) to combine financial
control measures with non-financial control measures. It is used for implementing the
mission and objectives of an organisation’s business strategy. The purpose of the BSC is to
enable effective monitoring and control of the business.
Essentially, the BSC is a management system that enables an organisation to identify and
