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The Complexities of The Balanced Scorecard
Top : Balanced Scorecard
The Balanced Scorecard - A Means For Evaluating Organizational Success
The Balanced Scorecard approach, pioneered by Kaplan and Norton is a method, or actually a collection of methods to make the linkage between strategy development and implementation clear, and to evaluate the extent to which an organization is actually meeting its goals.
In simple terms, Kaplan and Norton suggested four steps:
- Translating the vision into operational goals;
- Communicating the vision and link it to individual performance;
- Business planning; index setting
- Feedback and learning, and adjusting the strategy accordingly
Kaplan and Norton also suggest four perspectives:
- Financial: encourages the identification of a few relevant high-level financial measures. In particular, designers were encouraged to choose measures that helped inform the answer to the question "How do we look to shareholders?"
- Customer: encourages the identification of measures that answer the question "How do customers see us?"
- Internal business processes: encourages the identification of measures that answer the question "What must we excel at?"
- Learning and growth: encourages the identification of measures that answer the question "How can we continue to improve, create value and innovate?".
...but the process can be incredibly daunting. That's not to say that simple implementations won't work, provided one understands the principles, point and purposes, since you can tailor the whole system to suit the size and nature of the specific organization.
It's impossible to do justice to the balanced scorecard, so below are some additional expert resources on the topic.
Additional Resources About Balanced Scorecard Methods, Metrics, Design and Processes:
By na - Very nice overview of the balanced scorecard. Good starting point if you are looking for balanced scorecard information. Viewed 2095 Times )
By Organized Change Consultancy - Using the balanced scorecard to combine viewpoints of company success Viewed 3485 Times )
By Robert S. Kaplan - Using the Balanced Scorecard approach, Robert S. Kaplan, of Harvard Business School, and David P. Norton analyze the four essentials of customer management: customer selection, acquisition, retention, and growth. Viewed 1337 Times )
By Robert S. Kaplan - To be effective, board members must understand their company's strategy. Professor Robert S. Kaplan offers methods for using the Balanced Scorecard and strategy maps to increase board power. From Strategy and Innovation. Viewed 1269 Times )
By Robert S. Kaplan - Happy customers are good, but profitable customers are much better. In this article, professor and Balanced Scorecard guru Robert S. Kaplan introduces BSC Customer Profitability Metrics. From Balanced Scorecard Report. Viewed 2217 Times )
By Sandy RIchardson - There's no doubt that strategic planning is a discipline that every organization in all business sectors, including the public and non-profit sectors, should adopt. Years of experience have demonstrated that organizations that take a formal approach to strategy formulation and leverage tools such as the strategy map and the Balanced Scorecard to operationalize their strategy (i.e. translate their strategy into operational terms) achieve greater success in achieving their goals and delivering against their value proposition, vision, and mission. Why is this the case? Because taking an organized approach to strategy formulation, execution, and management, and leveraging proven strategy tools, helps make their "business" strategy actionable and more understandable to their employees. This allows all employees to maximize their contribution, through their work efforts and decision-making, to organizational success. Successful organizations have found that taking additional steps to align the entire organization (e.g. tools, training, resources, and budget dollars) with strategy and making strategy a continuous process translates into ... Viewed 658 Times )
By Sandy RIchardson - This is still the biggest question I get from people who have discovered the balanced scorecard and want to introduce this powerful tool in their organization. Sometimes they simply want to get their organization using measurement to obtain performance results feedback. However, sometimes their challenge is a bit bigger - they want their business leaders to take a second look at the way they actually use business performance results in their company. Regardless for their reason for wanting to implement the balanced scorecard in their organization, these folks need to focus on pitching their decision-maker on the balanced scorecard by helping them see how the balanced scorecard can solve significant business problems and enable the achievement of critical top and bottom line business results. Viewed 667 Times )
By Sandy RIchardson - As a CEO or business leader, have you ever looked at the measures your organization collects and reports on at the executive level and wondered why your team never seems to have the "right" conversations? You want to have deep, forward thinking strategy-focused discussions but that just never seems to happen as a product of business performance reviews and the subsequent discussion sessions. And while you could be experiencing this outcome because, as a team, you just aren't asking the right questions, it's more likely that you are trying to use the wrong information for the wrong purpose. More specifically, you could be trying to use operational measures and performance results to enable your strategic conversations. Viewed 563 Times )
By na - It's sometimes hard to grasp the idea of the balanced scorecard and how it will work in real organizations. This page has a number of real life examples and case studies of organizations that have moved to a balanced scorecard approach. Viewed 615 Times )
By Gail Perry - One of the most common questions we receive in our training courses is: "I am confused by the role of themes in building a balanced scorecard. Can you please explain them?" And I think I've figured out why it is confusing to so many people. Themes are essential strategic elements that form the foundation for a balanced scorecard. However, once the scorecard is built, the fundamental role they play is not always clear to the naked eye. ... The same is true of strategic themes. They provide structure, support, and often boundaries for your strategic balanced scorecard. More importantly, they define your business strategies and business model. This article will address how strategic themes are developed and used in a strategic balanced scorecard system. It is presumed the reader has some fundamental knowledge of balanced scorecard terminology. Viewed 517 Times )
By Balanced Scorecard Institute - The Institute's award-winning framework, Nine Steps to SuccessTM, is a disciplined, practical approach to developing a strategic planning and management system based on the balanced scorecard. Training is an integral part of the framework, as is coaching, change management, and problem solving. Emphasis is placed on teaching clients to fish, not handing them a fish, so the scorecard system can be sustained. A key benefit of using a disciplined framework is that it gives organizations a way to connect the dots between the various components of strategic planning and management, meaning that there will be a visible connection between the projects and programs that people are working on, the measurements being used to track success, the strategic objectives the organization is trying to accomplish and the mission, vision and strategy of the organization. Viewed 707 Times )
By Nanaimo - Of particular interest for those in government Nanaimo, B.C. shares the metrics it uses to determine success (or failure) within a balanced scorecard approach. Viewed 609 Times )
By BSI - he Institute's award-winning framework, Nine Steps to SuccessTM, is a disciplined, practical approach to developing a strategic planning and management system based on the balanced scorecard. Training is an integral part of the framework, as is coaching, change management, and problem solving. Emphasis is placed on teaching clients to fish, not handing them a fish, so the scorecard system can be sustained. A key benefit of using a disciplined framework is that it gives organizations a way to connect the dots between the various components of strategic planning and management, meaning that there will be a visible connection between the projects and programs that people are working on, the measurements being used to track success, the strategic objectives the organization is trying to accomplish and the mission, vision and strategy of the organization. Viewed 1127 Times )
By Paul Arveson - The Balanced Scorecard text by Kaplan and Norton describes in general terms the basic ideas of the balanced scorecard concept, its great advantages over past approaches to strategic management, and a general outline of how to develop and deploy such a system. However, there are many issues involved in making a good fit to a specific organization, and in estimating and minimizing the cost and time of deployment. Viewed 1010 Times )
By na - Very short article that explains the Balanced Scorecard and examines its similarity to Hoshin Planning. Viewed 2109 Times )
By Arthur Schneiderman - A must read if you want to implement or improve a balanced scorecard system, this article will help you sidestep the common errors and pitfalls in creating and using the scorecard methods. Viewed 1653 Times )
By Arthur M. Schneiderman - Arthur M. Schneiderman has compiled his version of the origins of the balanced scorecard approach and how it has evolved. Claims the origin to be during 1987 at Analog Devices. Viewed 2000 Times )
By Arthur M. Schneiderman - First of a three part article on how to use the balanced scorecard effectively. Part one presents a 9-step process that assures the identification of a manageable and actionable set of BSC metrics that link directly to an organization's strategic objectives. Access the entire series from this link. Viewed 1830 Times )
By Workforce Performance Newsletter - Robert S. Kaplan and David P. Norton have developed a set of measures that they refer to as a balanced scorecard. These measures give top managers a fast but comprehensive view of the organization's performance and include both process and results measures Viewed 3243 Times )
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6-Sep-2016
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15:26:57
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