David norton and i introduced the balanced scorecard in a 1992 harvard. If youd like to know more about using the balanced scorecard as a strategic management system, check out this detailed example which includes templates you can steal ideas from. Companies using the balanced scorecard as the cornerstone of a new strategic management system have two tasks. At one extreme, a measurementbased balanced scorecard is simply a performance measurement framework for grouping existing measures into categories, and displaying the measures graphically, usually as a dashboard. The latest business management research and ideas from hbs faculty. Norton as companies around the world transform themselves for competition that is based on information, their ability to exploit intangible assets has become far more decisive than their ability to invest in and. Kaplan is a senior fellow and the marvin bower professor. Many organizations especially in the private sector have adopted the balanced scorecard as a management and measurement. The balanced scorecard is a strategic planning and management system used to align.
Linking the balanced scorecard to strategy hbr store. The balanced scorecard is a performance measurement system, a strategic. Balanced scorecard presentation linkedin slideshare. Using the balanced scorecard as a strategic management system. After publication of the 1992 hbr article, several companies quickly adopted the. Nov 07, 2007 using the balanced scorecard as a strategic management system by robert s. A balanced scorecard should be a prelude to a business redesign or a process reengineering 1. Some companies went a step further, however, and discovered the scorecard s value as the cornerstone of a new strategic management system. Despite the best intentions of those at the top, lofty statements about becoming best in class, the. Conceptual foundations of the balanced scorecard 3. The balanced scorecard in healthcare clearpoint strategy.
Its objective is to translate an organizations mission and vision into actual operational actions strategic planning. Balanced scorecard means different things to different people. The effect of balanced scorecard on strategy participation. How the balanced scorecard complements the mckinsey 7s model. The balanced scorecard is a management and measurement system that enables organizations to clarify their vision and strategy and translate them into action. Art, biography, business, chick lit, childrens, christian, classics, comics. Mba presentation explaining kaplan and nortons balanced scorecard approach. In this article from 1996, the authors describe how the balanced scorecard can address a serious deficiency in traditional management systems. See the chart how one company built a strategic management system.
The concept of balanced scorecard has evolved beyond the simple use of perspectives and it is now a holistic system for managing strategy. Norton s everal years ago, we introduced the concept of a balanced scorecard for motivating and measuring business unit performance. Using the balanced scorecard as a strategic management system in the libyan construction industry abdussalam shibani, nawal gherbal published pdf deposited in coventry university repository original citation. The scorecard lets managers introduce four new processes that help companies make that important link. Essay about using the bsc as a strategic management system cram. Balanced scorecards have long been used in strategic business management to track key performance indicators, and are designed to provide a framework to manage resources. National built its new strategic management system stepbystep over 30 montbs, witb each step representing an incremental improvement. Measurement of performance in kenya has become continuous process. The balanced scorecard as a strategic management system.
Request pdf using the balanced scorecard as a strategic management system the balanced scorecard revolutionized conventional thinking about performance metrics. The benefits of using balanced scorecard as a strategic management system are linked to the structure of a balanced scorecard process. The main idea of a strategy map is that each strategic objective in your balanced scorecard is represented by a shape, usually oval. It acts as a catalyst for bringing in the change element within the organization.
B est of hbr usin g the balanced scorecard as a strategic. Balanced scorecard business process strategic management. The role of balanced score card as a strategic management. Linking the balanced scorecard to strategy robert s. The balanced scorecard was developed to measure both current operating performance and the drivers of future performance.
Peter drucker introduced management by objectives in his classic 1954 book, the. First, they must build the scorecard, and second they must use the scorecard. In addition, he shows how to become a strategyfocused organization by imbedding the balanced scorecard into critical organizational processes. Mar 19, 20 balanced scorecard it is discovered as the cornerstone of a new strategic management system it addresses a serious deficiency in traditional management system. Managers use the scorecard to describe and communicate their strategy, to align business units and. Linking the balanced scorecard to strategy strimgroup. If youre ready to create your own balanced scorecard, find out which steps to take in this article. Using a balanced scorecard to measure your key performance. Feb 25, 2009 mba presentation explaining kaplan and nortons balanced scorecard approach.
The balanced scorecard bsc enables business to transform its overall organizational strategy into effective management. Mar 14, 2016 using the balanced scorecard as a strategic management system william lickley. Request pdf using the balanced scorecard as a strategic management system. Using the balanced scorecard as a strategic management system by robert 8. Pdf using the balanced scorecard as a strategic management. The balanced scorecard demands that managers translate their general mission statement on customer. Free balanced scorecard lesson from the free management. The iterative sequence of actions enabled tbe company to. Using the balanced scorecard as a strategic management system by robert s. Building a scorecard can help managers link todays actions with tomorrows goals. One consequence of this change in emphasis was to increase the pressure on the design process to accurately reflect the organisations strategic goals.
Tracking too many will dilute your overall message, making your strategy difficult to communicate. Balanced scorecard step by step guides readers through the processes required for a successful balanced scorecard project. The paper uses the following structure for organizing the origin and subsequent development of the balanced scorecard. Article from hbrs 10 must reads on strategy including featured article what is strategy. The book provides an excellent complement to the two kaplan. It provides feedback around both the internal business processes and external outcomes in order to continuously improve strategic performance and results.
Balanced scorecard basics balanced scorecard institute. Using the balanced scorecard as a strategic management system hbr bestseller. Balanced scorecard a strategic planning and management system. There are four basic viewpoints or perspectives to take with the kpi balanced. 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. The balanced scorecard is a strategic planning and management system that provides summary details about key performances of an organization or company for its executives. An important chart which demonstrates that the balanced scorecard is a powerful approach for identifying areas of improvement and inadequacies in support processes. Norton as companies around the world transform themselves for compe tition that is based on information, their ability to exploit intangible assets has become far more decisive than their ability to invest in and manage physical assets. Many managers believe they are using a balanced scorecard when they supplement traditional financial measures with generic, nonfinancial measures about customers, processes, and employees. Best of hbr using the balanced scorecard as a strategic management system by robert s. The development of the balanced scorecard as a strategic.
860 600 1528 896 139 1595 438 195 1223 1569 1020 949 1164 520 780 672 975 1238 836 503 721 1539 453 1312 749 551 1298 469 1517 1441 956 1142 990 1318 1273 693 1098 928 1058 830 951 75 1463 200 375 1127