The balanced scorecardmeasures that drive performance 1992. 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. 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. Strategy execution and the balanced scorecard harvard. Norton as a means of defining a framework of performance measures that would support the achievement of the vision for an organisation, and the execution of its business strategy kaplan and norton 1996. Translating strategy into action kindle edition by kaplan, robert s. Robert kaplan and david norton are best known as the originators of the balanced scorecard, a strategic management tool that links a companys current actions with its longterm goals.
The balanced scorecard translates a companys vision and strategy into a coherent set of performance measures. In the first part, kaplan and norton provide the theoretical foundations for the balanced scorecard. In this book, the authors apply their revolutionary balanced scorecard management system to corporatelevel strategy, revealing how highly successful enterprises achieve powerful synergies by explicitly defining corporate headquarters role in setting, coordinating, and overseeing organizational strategy. Using the balanced scorecard as a strategic management system a list of related materials, with annotations to guide further exploration of the articles ideas and applications further reading. 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. Here is the book by the recognized architects of the balanced scorecard that shows how managers can use this revolutionary tool to mobilize their people to fulfill the companys mission. Includes index measurement and management in the information age why does business need a balanced scorecard.
Balanced scorecard an overview sciencedirect topics. Alignment really focuses on how to spread the strategy throughout the organization, as well as to other external stakeholders. 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. 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. What is the best book about balance scorecard concept. Using the balanced scorecard to create corporate synergies. 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. Buy books, tools, case studies, and articles on leadership, strategy, innovation, and other business and management topics. The balanced scorecard here is the book by the recognized architects of the balanced scorecard that shows how managers can use this revolutionary tool to mobilize their people to fulfill the companys mission. Conceptual foundations of the balanced scorecard 3. Kaplan is baker foundation professor at harvard business school. The balanced scorecard by robert steven kaplan, 9780875846514, available at book depository with free delivery worldwide.
The balanced scorecard addresses an everincreasing accounting problem, measuring current companies using old accounting techniques. Translating strategy into action, published in 1996, kaplan and norton defined a scorecard model, whereby in addition to financial measures, organizational performance should include measures from a customer perspective, an internal business process perspective, and a perspective measuring employee. The balanced scorecard was developed in the early 1990s by two guys at the harvard business school. Norton, which is also the cofounder, and president of the balanced scorecard groupon. Building your balanced scorecard strategy requires that you take these fundamental steps so that it will be strong and deliver the benefits you want and need for your business to thrive and grow. Alignment is a superb addition to the remarkable series written by professor robert s. The balanced scorecard is one of the most successful and widely used management tools in the world. Download for offline reading, highlight, bookmark or take notes while you read the balanced scorecard. Converting intangible assets in tangible outcomes harvard business school press, 2004 is a sequel to their classic the balanced scorecard. Norton, authors of the balanced scorecard, a revolutionary performance measurement system that allows organizations to quantify intangible assets such as people, information, and.
Knowledge gaps in existing balanced scorecard research are identified, leading to. After reading you will understand the basics of this powerful strategy and performance management tool. 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. The balanced scorecard measures that drive performance. Feb 28, 2017 align corporate strategy with a balanced scorecard using balanced scorecards to implement and align organizational strategy does this sound like your company. The key problem that kaplan and norton identified in the business of the day was that many companies tended to manage their businesses based solely on financial measures. Translating strategy into action is considered to be a major contribution to the development of performance management, as their work has changed the way performance is measured.
Kaplan 1996, hardcover at the best online prices at ebay. They realize that no single measure can protives understand that their organizations measure vide a clear performance target or focus attention on. Using the balanced scorecard as a strategic management system. Conceptual foundations of the balanced scorecard robert s. The balanced scorecard robert s kaplan bok 9780875846514. Read the balanced scorecard translating strategy into action by robert s. What follows, provides guidance and advice on the development and implementation of a balanced scorecard for those organisations considering the introduction of a. Develop your vision, mission, and guiding principles. Jun 03, 2017 the balanced scorecard believes that business leaders often times fail to connect the necessary strategy with the appropriate action or tactic. The aim of the balanced scorecard was to align business activities to the vision and strategy of the business, improve. This collection highlights the most important ideas and concepts from robert s. But often the efforts of individual units are not coordinated, resulting in conflicts, lost opportunities, and diminished performance robert s. Kaplan coauthored the strategyfocused organization and strategy maps book with his wellrenowned fellow executive david p. The balanced scorecardmeasures that drive performance robert s.
The balanced scorecard retains traditional financial measures. The book covers how a companys vision and strategy can be translated into a coherent set of performance measures. Balanced scorecard in 19923 and 19934 and their book in 19961. Subsequently it has become very popular with forprofit origins of the balanced scorecard the following extract from kaplan and nortons seminal book on the subject1 explain the authors involvement in the early development of the balanced scorecard. This article also contains a downloadable and editable balanced scorecard template what is a balanced scorecard. Its updated for 2020, and tells you all the basics in plain english. The strategic balanced scorecard is trying to focus the organisation on its strategy and measure the progress of the strategy. Use features like bookmarks, note taking and highlighting while reading the balanced scorecard. The overall pattern is familiar to anyone who has worked in strategy and measurement and we. These articles and the first book spread knowledge of the concept of balanced scorecard widely, and has led to kaplan and norton being seen as the creators of the concept. Translating strategy into action ebook written by robert s. David norton and i introduced the balanced scorecard in a 1992 harvard. Using the balanced scorecard as a strategic management system by robert s. The theory is that there are many other intangible.
Bbs is technique number 15 in our business analysis techniques book of 99 essential ba tools. The balanced scorecard summary how can we describe the balanced scorecard. Peter drucker introduced management by objectives in his classic 1954 book, the. Kaplan and norton demonstrate how senior executives in industries such as banking, oil, insurance, and retailing are using the balanced scorecard both to. Kaplan accounting, harvard and norton, president of renaissance solutions inc. Translating strategy into action by kaplan, robert s.
Think of a balanced scorecard as the instrument panel in the cockpit of an airplane. The balanced scorecard economics bibliographies cite. Building the balanced scorecard for your business dummies. The balanced scorecard tracks all the important elements of a companys strategyfrom continuous improvement and partnerships to teamwork and global scale. Kaplan and norton 2001a figure 3 making strategy a continual process transforming the balanced. Download it once and read it on your kindle device, pc, phones or tablets. For those who are looking to implement the bsc themselves, the bsi suggests reading the institute way. Preparation for the exercise includes reading about the bsc or visiting various web sites such as the balanced scorecard collaborative at. Scorecard as a strategic management system by robert s.
Origins of the balanced scorecard the following extract. The balanced scorecard translates a companys vision and str. 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. This cited by count includes citations to the following articles in scholar. How the balanced scorecard complements the mckinsey 7. The balanced scorecard tracks all the important elements of a companys strategyfrom continuous improvement and partnerships to teamwork and. Kaplans most popular book is the balanced scorecard. Norton argue that the responsibility for this critical alignment lies with corporate headquarters. Balanced scorecard other bibliographies cite this for me. In 1996, the two authors published a book the balanced scorecard. 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. This article explains the balanced scorecard, developed by robert kaplan and david norton, in a practical way. 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.
The bsc method of kaplan and norton is a strategic approach and performance management system that enables organizations to translate a companys vision and strategy into implementation, working from 4 perspectives. The kaplannorton collection 4 books kindle edition by robert s. If you have not yet read strategy maps, the balanced scorecard and the strategyfocused organization, you should begin with those books before reading this one. Kaplan and norton describe the innovation of the balanced scorecard as follows. In this book, the authors apply their revolutionary balanced scorecard management. The book explains that we are now in the information age and the old accounting from the industrial age doesnt properly reflect or measure a company. Norton is a calltoaction book consisting of several quantitative performance measures. Kaplan has 71 books on goodreads with 35057 ratings. Just as the balanced scorecard attempts to protect longterm objectives from shortterm suboptimization, the budgeting process must protect the longterm initiatives from the pressures to deliver shortterm financial performance.
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. In the almost 20 years that have passed since its publishing, the balanced scorecard system has. 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. This is our short and simple guide to the balanced scorecard. Kaplan s most popular book is the balanced scorecard. Balanced scorecard stepbystep volta river authority. Using the balanced scorecard as a strategic management. This article also contains a downloadable and editable balanced scorecard template. The balanced scorecard focuses on factors that create longterm value traditional financial reports look backward reflect only the past. The balanced scorecard institute bsi offers consulting, training, certifications, software, resources, and more aboutyou guessed itthe balanced scorecard. The balanced scorecardmeasures that drive performance.