The balanced scorecard bsc is a business framework used for tracking and managing an organizations strategy. Linking the balanced scorecard to strategy robert s. This system provides feedback on internal business processes and external outcomes to continually improve organizational performance and results. The balanced scorecard is defined as a set of measurements that give top managers a fast, but comprehensive view of the business including operational measures on customer satisfaction and the organizations innovation and improvement activities, as well as financial measurements. Dec 19, 2019 it is essentially a framework that helps you translate top level strategy into specific objectives, a set of measures, indicators and actions. Using the balanced scorecard as a strategic management. Putting the balanced scorecard to work article harvard. Now the authors show how several companies are putting the balanced scorecard to work.
Conceptual foundations of the balanced scorecard robert s. The development of the balanced scorecard as a strategic. Balanced scorecard an overview sciencedirect topics. The balanced scorecard, first proposed in the januaryfebruary 1992 issue of hbr the balanced scorecardmeasures that drive performance, provides.
In their septoct 1993 hbr article titled putting the balanced scorecard to work, kaplan and norton offered an overview of how one could link the balanced scorecard to corporate strategies. Usin g the balanced scorecard as a strategic management system by robert s. View notes hbr putting the balanced scorecard to work from bus 201 at simon fraser university. The balanced scorecard continuous improvement of safety, equip can serve as the focal point for the organiza ment reliability, responsiveness, and cost ef tions efforts, defining and communicating pri fectiveness. Putting the balanced scorecard to work strategic management.
Business modelling aims to help the balanced scorecard work. Clients balancedscorecardinpractice balanced scorecard stepi. This paper puts forward a balanced scorecard approach to strategic management. The balanced scorecard, first proposed in the januaryfebruary 1992 issue of hbr the balanced scorecardmeasures that drive performance, provides executives with a comprehensive framework that translates a companys. The balanced scorecard tracks all the important elements of a companys strategyfrom continuous improvement and partnerships to teamwork and global scale. Balanced scorecard main page performance measures main page strategy main page. Creating a balanced scorecard requires translating a companys strategy and mission statement into specific goals and measures. Despite the best intentions of those at the top, lofty statements about becoming best in class, the. How to shift your focus from putting products first to putting customers first. Nov 07, 2007 using the balanced scorecard as a strategic management system. Figure 2 provides an overview of the approach they proposed. Pdf putting the balanced scorecard to work hans dabee. Balanced scorecard magazine article strategic dreams often turn into nightmares if companies start engaging in expensive and distracting restructurings. Focusing your organization on strategywith the balanced.
The bsc framework is based on the balance between leading and lagging indicators, which can respectively be thought of as the drivers and outcomes of your company goals. The balanced scorecard translating strategy into action. Balanced scorecard hbr bestseller the balanced scorecard tracks all the important elements of a companys strategyfrom continuous improvement and partnerships to teamwork and global scale. Managers then track those measures as they work toward their goals. Putting the balanced scorecard to work by managers rarely think of measurements as part of. Senior managers at eci, for example, established general goals for customer performance. Pdf putting the balanced scorecard to work kam chap chap. Putting the balanced scorecard to work article harvard business. They realize that no single measure can protives understand that their organizations measure vide a clear performance target or focus attention on.
The usage of the e balanced scorecard can actually vary depending on the structure and philosophy of the company. But they rarely think of measurement as an essential part of their strategy. The balanced scorecard focuses on factors that create longterm value traditional financial reports look backward reflect only the past. A cool simple explanation for balanced scorecards and its four original perspectives. Much more than a measurement exercise, the balanced scorecard is a management system that can motivate breakthrough improvements in such critical areas as product, process, customer, and market development. Januaryfebruary 1992 issue of hbr the bal anced scorecardmeasures that drive perfor mance, provides. May 03, 2014 putting the balanced scorecard to work.
The office of strategy management hbr reprint r0510d. Definition and concept an approach to the provision of information to the management to assist with. Using the balanced scorecard as a strategic management system by robert s. Managing alliances with the balanced scorecard fifty percent of corporate alliances fail. The balanced scorecardmeasures that drive performance. With help from the balanced scorecard bsc, consumer electronics retailing giant best buy fended off rivals and positioned itself to achieve aggressive new goals, with dazzling resultsfinancial and nonfinancial. Norton s everal years ago, we introduced the concept of a balanced scorecard for motivating and measuring business unit performance. Norton 1993 putting the balanced scorecard to work.
Measures that drive performance hbr onpoint enhanced edition robert s. Measures that drive performance and a 1996 book, the balanced scorecard. My experiences as a balanced scorecard practitioner with a large canadian company taught me that tremendous results are possible with the tool, but to attain. Effective measurement, the authors point out, must be an integral part of the management process. But you can increase your partnerships odds of success by applying these techniques. Since then, the concept has become well known and its various forms widely adopted across the world rigby, 2001. He is a cofounder of the balanced scorecard collaborative. Focusing your organization on strategywith the brilliantbut.
A practitioners guide to the balanced scorecard pdf 268kb. Much more than a measurement exercise, the balanced scorecard is a management system that can motivate breakthrough improvements in such critical areas as. Kaplan is the marvin bower professor of leadership development at harvard business school in boston. Conceptual foundations of the balanced scorecard working paper. Translating strategy into action, that has been translated into 24 languages. Managing innovation, a balanced scorecard reader hbr store. The balanced scorecard developed in 1992, belongs to a strategic management system that includes efficient implementation and effective policies and tasks necessary to promote the companys customers, employees and management meet. Balanced scorecard step by step guides readers through the processes required for a successful balanced scorecard project. In addition, he shows how to become a strategyfocused organization by imbedding the balanced scorecard into critical organizational processes. 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. David norton and i introduced the balanced scorecard in a 1992 harvard. The balanced scorecard, taught at harvard business school.
How a company is performing from its should articulate goals for time, quality, and perforcustomers perspective has become, therefore, a pri mance and service and then translate these goals ority for top management. Balanced scorecard hbr bestseller the balanced scorecard tracks all the important elements of a companys strategyfrom continuous improvement and partnerships to. The balanced scorecard measures that drive performance 1992. Norton todays managers recognize the impact that measures have on performance. Putting the balanced scorecard to work free download as powerpoint presentation. For more, read for more, read their article, the balanced scorecard.
Robert kaplan and david norton created the balanced scorecard approach in the. Putting the balanced scorecard to work hbrs 10 must. The balanced scorecard and its development the balanced scorecard was first introduced in the early 1990s through the work of robert kaplan and david norton of the harvard business school. Technical brief the evolution of the balanced scorecard. Putting the balanced scorecard to work september october 1993 using the balanced scorecard as a strategic management system january february 1996 alignment and communicatio n acceptance and acclaim. Using the balanced scorecard as a strategic management system. Todays managers recognize the impact that measures have on performance. The balanced scorecard measures that drive performance. The evolution of the balanced scorecard the evolution continuted in kaplan and nortons septoct 1993 hbp article putting the balanced scorecard to work. After publication of the 1992 hbr article, several companies quickly adopted the.
The original balanced scorecard was created in the early 1990s by robert kaplan, now a professor emeritus at harvard business school, and management consultant david norton. Bsc swot, or the balanced scorecard swot analysis, was first introduced, in 2001, by lennart norberg and terry brown bsc swot is a simple concept that combines the two powerful tools bsc balanced scorecard and swot analysis when identifying factors that drives or hinders strategy. What do companies like rockwater, apple computer, and advanced micro devices have in commonl theyre using the scorecard to measure performance and set strategy. The balanced scorecard, first proposed in the januaryfebruary 1992 issue of hbr the balanced scorecard measures that drive performance, provides executives with a comprehensive framework that translates a companys strategic objectives into a coherent set of performance measures. Putting the balanced scorecard to work hbr reprint 93505. Product number 4118 what you measure is what you get. The idea in brief the core idea the idea in practice putting the idea to work 3 article summary 4 putting the balanced scorecard to work a list of related materials, with annotations to guide further. Hbr putting the balanced scorecard to work putting the. Linking the balanced scorecard to strategy strimgroup. The overall pattern is familiar to anyone who has worked in strategy and measurement and we. Originally published in 1994, it offers as much today as it. In this article, kaplan and norton offered an overview of how maangers could link the balanced scorecard to corporate strategies. Its far more effective to choose a design that works reasonably well, then develop a strategic system to tune the structure to the strategy. Conceptual foundations of the balanced scorecard 3.
The four perspectives in bsc is combined with the four dimensions of swot in a matrix where findings may be. B est of hbr usin g the balanced scorecard as a strategic. Summary example rockwater apple computer advanced micro devices fmc corporation conclusion. These companies lose sight of the essence of the scorecard. It is called balanced because it adopts a balanced caseeffect view with a measuringtracking approa. Pdf putting the balanced scorecard to work kam chap. 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. The book provides an excellent complement to the two kaplan. Balanced scorecard is a management system that enables organizations to translate the vision and strategy into action.
Balanced scorecard other bibliographies cite this for me. Hbr januaryfebru ra y 1992 the balanced scorecardmeasures that drive performance robert s. For example, executives may introduce new strategies and innovative operating processes intended to. Focusing your organization your strategys on strategywith the brilliantbut can you execute it. A practitioners guide to the balanced scorecard cima. Strategic performance measurement using balanced scorecard. Effective measurement, however, must be an integral part of the management process. Norton new sections to guide you through the article. Measuring the strategic readiness of intangible assets hbr reprint r0402c. 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 by robert s.
This article sets out a simple, elegant, and ultimately toughminded way to build profitability in a service business. Performance measurement using the balanced scorecard. The idea in brief the idea at work exploring further. But they rarely think of measurement selection from hbrs 10 must reads. Here at the balanced scorecard collaborative bscol, we hear plenty of themat inperson conferences, online conferences, in everyday conversations with people who are implementing the scorecard all over the world.
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