Norton introduced the balanced scorecard, a revolutionary performance measurement system that allowed organizations to quantify intangible assets such as people, information, and customer relationships. Much more than a measurement exercise, the balanced scorecard is a management system that can motivate breakthrough improvements in such critical areas as. The balanced scorecard measures that drive performance. But they rarely think of measurement as an essential part of their strategy. Focusing your organization on strategywith the brilliantbut. The article is a summary of an interview with robert kaplan, coauthor of the balanced scorecard, translating strategy into action harvard business school press, 1996. Kaplan and norton recently expanded on their ideas in a book called the balanced scorecard.
Norton created the balanced scorecard, a means of linking a company s current actions to its longterm goals. Other readers will always be interested in your opinion of the books youve read. Putting the balanced scorecard to work article harvard. Kaplan and nortons original work makes no specific observations concerning how the balanced scorecard might improve the performance of organisations. A newly formed team develops an implementation plan for the scorecard, including linking the measures to databases and information systems, communicating the balanced scorecard throughout the. Balanced scorecard report the strategy execution source. Managers then track those measures as they work toward their goals. Get started with the balanced scorecard unit salesforce.
Balanced scorecard report the strategy execution source janfeb 2011 vol no 1 palladium group, inc. The scorecard measures organizational performance across four linked perspectives. Kaplan received the lifetime contribution award for distinguished contributions to advancing the. To put the balanced scorecard to work, companies should articulate goals for time, quality, and performance and. Balanced scorecard is a strategy performance management tool a semistandard structured report, that can be used by managers to keep track of the execution of activities by the staff within their control and to monitor the consequences arising from these actions. Balanced scorecard an overview sciencedirect topics. But often the efforts of individual units are not coordinated, resulting in conflicts, lost opportunities, and diminished performance robert s.
A new approach to strategic management was developed in the early 1990 s by drs. The balanced scorecardmeasures that drive performance. If you want some examples in your industry, download one of our free ebooks. Faculty cochair bob kaplan discusses the concept of the balanced scorecard and the driving corporate performance program. Nov 07, 2007 using the balanced scorecard as a strategic management system. In this book, the authors apply their revolutionary balanced scorecard management. This site is like a library, use search box in the widget to get ebook that you want. The balanced scorecardmeasures that drive performance robert s. Includes index measurement and management in the information age why does business need a balanced scorecard. Focusing your organization on strategywith the brilliant. The development of bsc as a strategic management tool page 2 of 9.
Putting the balanced scorecard to work download ebook. Selectdefine the strategybusiness unit to which to apply the scorecard. Before the balanced scorecard companies have used various measurement systems that have made incremental improvements and concentrated mostly on the company s financials. Conceptual foundations of the balanced scorecard working paper. The development of the balanced scorecard as a strategic. Putting the balanced scorecard to work by robert s. Balanced scorecard basics balanced scorecard institute.
The idea in brief the core idea the idea in practice putting the idea to work 1 article summary 2 putting the balanced scorecard to work a list of related materials, with annotations to guide further. Implementing balance scorecard for performance measurement. The measures on a balanced scorecard are being used by. Now the authors show how several companies are putting the balanced scorecard to work. Kaplan, senior fellow and marvin bower professor of leadership development, emeritus at the harvard business school, is codeveloper of both activitybased costing abc and the balanced scorecard bsc. Using the balanced scorecard as a strategic management system. But you can increase your partnerships odds of success by applying these techniques. Balanced scorecard report the strategy execution source marapr 2011 vol no 2 palladium group, inc. Kaplan is a professor born in 1940, new york united states he is renowned for his development of leadership at harvard business school as a professor, and as an executive of the balanced scorecard group. Balanced scorecard basics communicat business systems. It has the ability to show the connections between all four perspectives in a onepage picture. Balanced refers to the balance between external and internal key figures. Robert kaplan harvard business school and david norton. The balanced scorecard focuses on factors that create longterm value traditional financial reports look backward reflect only the past.
Norton improved balanced scorecard more and more with their studies and in in. Norton s everal years ago, we introduced the concept of a balanced scorecard for motivating and measuring business unit performance. Norton today s managers recognize the impact that measures have on performance. The balanced scorecard tracks all the important elements of a company s strategyfrom continuous improvement and partnerships to teamwork and global scale. Kaplan born 1940 is baker foundation professor at harvard business school, united states, and cocreator, together with david p. The balanced scorecard or balance score card is a strategic performance measurement model which is developed by robert kaplan and david norton. Norton published the article named putting the balanced scorecard to work in 1993. Introduction to the balanced scorecard and performance.
Norton your balanced scorecard provides a topdown description of your companys strategy and your assumptions about the corporate objectives and measures needed to implement that strategy. Organizations have adapted the bsc to their particular external and internal circumstances. Januaryfebruary 1992, putting the balanced scorecard to work hbr, septemberoctober 1993, and using the balanced scorecard as a strategic management system hbr, januaryfebruary 1996. Whether youve loved the book or not, if you give your honest and detailed thoughts then people will find new books that are right for them. Conceptual foundations of the balanced scorecard 3. Summary example rockwater apple computer advanced micro devices fmc corporation conclusion. Hbr 1992 the balanced scorecard measures that drive performance by robert s. Both commercial and notforprofit organizations have successfully used the bsc framework. The balanced scorecard is a strategic planning and management system that is used extensively in business and industry, government and nonprofit organizations worldwide 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 addition, it can help provide information on the chosen strategy more. Linking the balanced scorecard to strategy strimgroup. Kaplan s most popular book is the balanced scorecard.
How balanced scorecard companies thrive in the new business environment the strategyfocused organization the summary in brief in 1996, robert kaplan and david norton introduced the balanced scorecard performance measurement method, which included not only traditional financial measures but also such qualitative measures as employee sat. David norton and i introduced the balanced scorecard in a 1992 harvard. These companies lose sight of the essence of the scorecard. Traditionally companies used only shortterm financial performance as the measure of success. This cited by count includes citations to the following articles in scholar. In an earlier, groundbreaking article, balanced scorecard measures that drive performance, the authors proposed a new measurement. Using the balanced scorecard as a strategic management. How a company is performing from its should articulate goals for time, quality, and perfor. Norton is a calltoaction book consisting of several quantitative performance measures. Balanced scorecard bsc is a management framework that was developed by robert s. Pdf putting the balanced scorecard to work kam chap chap. Several factors led to the lack of adoption of placing values. It will help a company link longterm strategy with shortterm financial goals. Putting the balanced scorecard to work strategic management.
The idea in brief the core idea the idea in practice putting the idea to work 1 article summary 2 using the balanced scorecard as a strategic management system. Putting the balanced scorecard to work pdf free download. Management must take into account not only customers and. Effective measurement, the authors point out, must be an integral part of the management process. Its objective is to translate an organization s mission and vision into actual operational actions. The balanced scorecard was originally developed by dr.
It is with this thought in mind that the balanced scorecard was developed by harvard professor robert kaplan and his colleague david norton. Visualise the presentation full screen, download a. A balanced scorecard strategy map is a onepage visual depiction of an organization s scorecard. Like the essential food groups, the main idea behind the scorecard is to provide a balanced view of the organization across four main groups or pillars see. This download includes a balanced scorecard template contained in an ms excel spreadsheet developed on the basis of the robert s. Norton argue that the responsibility for this critical alignment lies with corporate headquarters. Using the balanced scorecard as a strategic management system by robert s.
Kaplan has 46 books on goodreads with 35355 ratings. Norton todays managers recognize the impact that measures have on performance. Balanced scorecard setyo wibowo\s personal homepage. Pdf performance management and the balanced scorecard in. What do companies like rockwater, apple computer, and advanced micro devices have in commonl theyre using the scorecard to measure performance and set strategy. Norton, of the balanced scorecard, a means of linking a company s current actions to its longterm goals. To put the balanced scorecard to work, companies should articulate goals for time, quality, and performance and service and then translate these goals into specific measures. Senior managers at eci, for example, established general goals for customer performance. Putting the balanced scorecard to work harvard business. The strategyfocused organization servicing companies. Recognizing some of the weaknesses and vagueness of previous management approaches, the balanced scorecard approach provides a clear prescription as to. Putting the balanced scorecard to work article harvard business. Pdf putting the balanced scorecard to work scinapse. Putting balance scorecard to work critical analysis.
A practitioners guide to the balanced scorecard cima. Creating a balanced scorecard requires translating a company s strategy and mission statement into specific goals and measures. Putting balance scorecard to work critical analysis essay. Putting the balanced scorecard to work, harvard business. Norton the balanced scorecard tracks all the important elements of a company s strategyfrom continuous improvement and partnerships to teamwork and global scale. He is cocreator of the balanced scorecard management system with david norton. Linking the balanced scorecard to strategy robert s. Norton your balanced scorecard provides a topdown description of your company s strategy and your assumptions about the corporate objectives and measures needed to implement that strategy. Translating strategy into action ebook written by robert s. Click download or read online button to get putting the balanced scorecard to work book now. It is used to compare measured key figures with the vision and strategies of the enterprise.
The article was based on a multicompany research project to study performance measurement in companies whose intangible assets played a central role in value creation nolan norton institute, 1991. Download for offline reading, highlight, bookmark or take notes while you read the balanced scorecard. Kaplan and nortons balanced scorecard is a concept still widely used and. Kaplan joined the hbs faculty in 1984 after spending 16 years on the faculty of the business school at carnegiemellon university. Robert samuel kaplan born 1940 is an american accounting academic, and emeritus professor of leadership development at the harvard business school, known as cocreator, together with david p.
Setting up the balanced scorecard kaplan and norton highlight that the visions of the company should be linked with the strategy of the company and same can be tangibalized through realistic performance measures related to four perspectives highlighted above in a balance scorecard. The balanced scorecard bsc translates an organization s mission and strategy into a comprehensive set of performance measures that provides the framework for a strategic measurement and management system. They realize that no single measure can protives understand that their organizations measure vide a clear performance target or focus attention on. Its objective is to translate an organizations mission and vision into actual operational actions strategic planning.