The balanced scorecard (BSC) is a whole of quantitative measurements evaluating to what extent the organisation succeeds in achievingits mission and strategic objectives. These measurements are built up around four viewpoints: innovation and learning (people management), internal processes, customers and financial management. The indicators of each approach are linked to each other through a cause–effect relationship. These relationships are based on hypothesises that have to be monitored permanently.
The BSC is also very useful as a communication tool for management to inform the people in the organisation and the stakeholders to what extent the strategic plan has been achieved. The balanced scorecard is increasingly used in the public sector in Europe. It should be noted that the balanced scorecard can be used within the CAF assessment.