The Balanced Scorecard is a management method.

A Balanced Scorecard summarizes that information of a company which is really important for the strategic development. That is why the term cockpit is often used for it.

The Balanced in the Scorecard means balance in three ways:

1. in the presentation of the company,
2. in the inclusion of all essential organizational units,
3. in the communication with all employees.

With the Balanced Scorecard the following five intentions are pursued:

1. To capture the complexity of business operations
2. Transparently visualize the company's development in management
3. To make these strategic goals accessible to every employee
4. To anchor strategies in the company's daily routine (=> budget)
5. To adapt strategies to changing circumstances

Source: Balanced Scorecard - LPMAcademy, Christian Bernert