What is Balanced Scorecard in SAP FIN-SEM-CPM - Corporate Performance Monitor?

SAP Term: Balanced Scorecard

• Component: FIN-SEM-CPM

• Component Name: Corporate Performance Monitor

• Description: Concept for measuring and presenting enterprise performance. The Balanced Scorecard is a concept designed by Robert S. Kaplan and David P. Norton. It aims at expanding the traditional model of accounting by adding information on the non-financial assets of an enterprise, such as product quality, effective internal processes, motivation and the employees' level of education. With this, the reporting of traditional accounting, which is focused on previous periods, can be complemented with the identification of value drivers that may be relevant for the future performance of the enterprise.

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• Key Concepts: 
  The Balanced Scorecard is a performance management tool used to measure the success of an organization. It is part of the FIN-SEM-CPM Corporate Performance Monitor (CPM) component of SAP. The Balanced Scorecard is a strategic planning and management system that helps organizations to align their activities with their vision and strategy. It provides a comprehensive view of an organization's performance by measuring financial, customer, internal process, and learning & growth perspectives. 
  
  How to use it: 
  The Balanced Scorecard can be used to measure the performance of an organization in terms of its financial, customer, internal process, and learning & growth perspectives. It can be used to track progress towards goals and objectives, identify areas for improvement, and develop strategies for achieving desired results. The CPM component of SAP provides tools for creating and managing Balanced Scorecards. 
  
  Tips & Tricks: 
  When creating a Balanced Scorecard, it is important to ensure that the metrics chosen are relevant to the organization's goals and objectives. It is also important to ensure that the metrics chosen are measurable and can be tracked over time. Additionally, it is important to ensure that the metrics chosen are actionable and can be used to drive improvement in the organization's performance. 
  
  Related Information: 
  The Balanced Scorecard is closely related to other performance management tools such as Key Performance Indicators (KPIs), Dashboards, and Business Intelligence (BI). These tools can be used in conjunction with the Balanced Scorecard to provide a more comprehensive view of an organization's performance. Additionally, the CPM component of SAP provides additional tools for managing performance such as forecasting, budgeting, and reporting.