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 the phrase balanced scorecard primarily refers to a performance management report used by a management team, and typically. Using the balanced scorecard as a strategic management system by robert s. Robert kaplan and david norton created the balanced scorecard approach in the. Several years ago, we introduced the concept of a balanced scorecard. Nortons concept of the balanced scorecard revolutionized conventional thinking about performance. In addition, it can help provide information on the chosen strategy more.
The balanced scorecard requires specific measures of what customers getin terms of time, quality, performance and service, and cost. Measures for business strategies and financial themes. But financial measures tell the story of past events, an adequate story for industrial age companies for which investments in longterm capabilities and customer relationships were not critical for success. A practitioners guide to the balanced scorecard pdf 268kb. The balanced scorecard was originally developed by dr. The steps involved in strategy mapping at the head of the strategy map is the overriding objective of the organisation which describes how it creates value. The balanced scorecard as a performance management tool. Using the balanced scorecard as a strategic management system. Kaplan and norton 2001 the balanced scorecard by kaplan and norton pdf translating strategy into action. Traditionally companies used only shortterm financial performance as the measure of success.
The aim of the balanced scorecard was to align business activities to the vision and strategy of the business, improve internal and external communications, and. Commentary transforming the balanced scorecard from performance measurement to strategic management. 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. The balanced scorecard tracks all the important elements of a companys strategyfrom continuous improvement and partnerships to teamwork and global scale. Entrevista a robert kaplan, creador del bsc youtube. Definition and concept an approach to the provision of information to the management to assist with. The balanced scorecard measures that drive performance by robert s. The strategyfocused organization servicing companies. The balanced scorecard by kaplan and norton 1996 the norton intro. Perspectives surrounding the balanced scorecard bsc model the significance is that if factors used in a strategic management system, such as a bsc, are invalid, managers can focus upon the wrong things and this, in turn, can potentially be damaging to companies. I have excerpted below their five futures expansions. Therefore, productivity can best be improved by clarifying strategically aligned goals. Many other gurus have jumped on the balanced scorecard wagon and produced a plethora of books all purporting to be the definitive book on balanced scorecards.
Norton is a calltoaction book consisting of several quantitative performance measures. Conceptual foundations of the balanced scorecard 3. Norton, csing the balanced scorecard as a strategic. Kaplan has 71 books on goodreads with 35509 ratings. Two eminent doctors robert s kaplan and david p norton evolved their balanced scorecard system from early mdis and jointly produced their apparently groundbreaking book in 1996. A best practice perspective on managing poor performers. The four perspectives of the scorecardfinancial measures, customer knowledge, internal business processes, and learning and growthoffer a balance between shortterm and longterm objectives, between outcomes desired and performance drivers of those outcomes, and. The steps involved in strategy mapping at the head of the strategy map is the overriding objective of the organisation which describes how it. Kaplan coauthored the strategyfocused organization and strategy maps book with his wellrenowned fellow executive david p.
Aug 27, 2017 the balanced scorecard summary robert s. Kaplan and norton describe the innovation of the balanced scorecard as follows. Download it once and read it on your kindle device, pc, phones or tablets. Its objective is to translate an organizations mission and vision into actual operational actions strategic planning. Kaplan is a professor at harvard university and david p. Conceptual foundations of the balanced scorecard robert s. Kaplan and nortons future vision of the balanced scorecard. Norton created the balanced scorecard, a means of linking a companys current actions to its longterm goals. According to kaplan and norton, this distinction between a measurement and a. The balanced scorecard spanish edition kindle edition by norton, david, robert kaplan.
Nortons concept of the balanced score card revolutionized conventional thinking about performance metrics. The four perspectives of the scorecard financial measures, customer knowledge, internal business processes, and learning and growthoffer a balance between shortterm and longterm objectives, between outcomes desired and performance drivers of those outcomes, and between hard. The balanced scorecard or balance score card is a strategic performance measurement model which is developed by robert kaplan and david norton. Norton is founder and president of the balanced scorecard collaborative in lincoln, massachusetts. Linking the balanced scorecard to strategy strimgroup. Theoretical perspectives and public management implications article pdf available in managerial auditing journal 166. Air force security assistance center foreign military sales center institutionalizes how it develops and executes international agreements by. Using the balanced scorecard as a strategic management. Norton born 1941 is an americanborn business theorist, author, senior executive, and a prominent management consultant he graduated from harvard university, meanwhile obtaining a doctorate of business administration. Balanced scorecard, strategy maps y the strategyfocused organization. This system provides feedback on internal business processes and external outcomes to continually improve organizational performance and results. David norton and i introduced the balanced scorecard in a 1992 harvard business. Commentary transforming the balanced scorecard from.
David norton as a framework for measuring organizational performance using a more balanced set of performance measures. The balanced scorecard retains traditional financial measures. The bsc technique was developed by kaplan and norton 1992, 1996 to. Norton argue that the responsibility for this critical alignment lies with corporate headquarters. A new challenge article pdf available in journal of management development 285. The creators of the strategy map and balanced scorecard concept, professors robert s.
The balanced scorecard measures that drive performance. Boost your life and career with the best book summaries. Transforming the balanced scorecard from performance measurement to. The balanced scorecardmeasures that drive performance. The balanced scorecard is designed to take a balanced look at all of the companys business factors and formulate performance measures accordingly. Norton, recently wrote an article, the future of the balanced scorecard. Building balanced scorecard with swot analysis, and. In this book, the authors apply their revolutionary balanced scorecard management. The four perspectives of the scorecardfinancial measures, customer knowledge, internal business processes, and learning and growthoffer a balance between shortterm and longterm objectives, between outcomes desired and performance drivers of those outcomes, and between hard. 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. What follows, provides guidance and advice on the development and implementation of a balanced scorecard for those organisations considering the introduction of a. The balanced scorecard as a performance management tool for. Balanced scorecard basics balanced scorecard institute. Based on theory y, mcgregor concluded, an employee, if directly involved in the goal setting process, can be relied upon for selfcontrol.
They realize that no single measure can protives understand that their organizations measure vide a clear performance target or focus attention on. Reaching your potential is not simply about dreaming or being idealistic, it is a process that involve specific actions, exercises, discipline and hard work. Kaplans most popular book is the balanced scorecard. But often the efforts of individual units are not coordinated, resulting in conflicts, lost opportunities, and diminished performance robert s.
The balanced scorecard translates a companys vision and strategy into a coherent set of performance measures. Balanced scorecard is a management system that enables organizations to translate the vision and strategy into action. 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. May 03, 2014 the balanced scorecard or balance score card is a strategic performance measurement model which is developed by robert kaplan and david norton. Almost 40 years later, kaplan and nortons balanced scorecard is. Kaplan accounting, harvard and norton, president of renaissance solutions inc. Strategy mapping was developed by kaplan and norton as an extension to the balanced scorecard and to make implementations of the scorecard more successful. Januaryfebru ra y 1992 the balanced scorecardmeasures that drive performance robert s.1524 1352 1183 1260 1567 246 1043 775 764 1004 1069 398 248 1041 289 1275 70 1581 1496 1288 365 105 229 1494 856 770 529 646 1375 971 380 492 496 1432 683 1130 736 1358