#BSCTradingTips In the world of trading, acronyms and abbreviations are a common sight. One such term that traders often come across is BSC, which stands for Balanced Scorecard. This management tool is used to measure and provide feedback to organizations. It is not a trading strategy per se, but it plays a crucial role in the strategic planning and management of trading firms. In this glossary entry, we will delve deep into the concept of BSC, its relevance to trading, and how it is used in the TIOmarkets context.
The Balanced Scorecard (BSC) was originally developed by Drs. Robert Kaplan and David Norton as a framework for measuring organizational performance using a balanced set of performance measures. It is used to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals. In the context of trading, BSC can be used to measure the performance of trading strategies and the overall performance of a trading firm.
Understanding the Balanced Scorecard
The Balanced Scorecard is a strategic planning and management system that is used extensively in business and industry, government, and nonprofit organizations worldwide. It is essentially a method of viewing the organization from four different perspectives to get a balanced view of performance. These four perspectives are: Financial, Customer, Internal Process, and Learning and Growth.
The Financial perspective covers the financial objectives of an organization and allows managers to track financial success and shareholder value. The Customer perspective covers the customer objectives such as customer satisfaction, market share goals as well as product and service attributes. The Internal Process perspective focuses on internal operational goals and outlines the key processes necessary to deliver the customer objectives. The Learning and Growth perspective focuses on high-level goals related to corporate culture, employee training and development, and organizational change.