The balanced scorecard kaplan and norton 1996 pdf

The bsc technique was developed by kaplan and norton 1992, 1996 to combine financial control measures with nonfinancial control measures. Measuring business strategy financial perspective customer perspective internalbusinessprocess perspective learning and growth perspective linking balanced scorecard measures to your strategy structure and strategy. The balanced scorecardmeasures that drive performance robert s. Balanced business scorecard a strategic performance measurement system. They realize that no single measure can protives understand that their organizations measure vide a clear performance target or focus attention on. Norton, recently wrote an article, the future of the balanced scorecard. Many managers believe they are using a balanced scorecard when they supplement traditional financial measures with generic, nonfinancial measures about customers, processes, and employees. These financial measures are inadequate, however, for guiding and evaluating the journey that information age companies must make to create future value through investment in customers, suppliers, employees, processes, technology, and innovation.

Preparation for the exercise includes reading about the bsc or visiting various web sites such as the balanced scorecard collaborative at. 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. Includes index measurement and management in the information age why does business need a balanced scorecard. Balanced scorecard basics balanced scorecard institute. Nortons concept of the balanced scorecard revolutionized conventional thinking about performance metrics. The development of the balanced scorecard method occurred because many business organizations realized that focus on a onedimensional measure of performance. The balanced scorecard focuses on factors that create longterm value traditional financial reports look backward reflect only the past. Executive performance needs to be judged on success at meeting a mix of both financial and nonfinancial measures to effectively operate a business. Using the balanced scorecard as a strategic management system by robert s. Their combined citations are counted only for the first article. They realize that no single measure can protives understand that their organizations measure vide a.

The scorecard measures organizational performance across four linked perspectives. Traditionally companies used only shortterm financial performance as the measure of success. The balanced scorecard measures that drive performance. Summary by steve barnier master of accountancy program university of south florida, summer 2001. Commentary transforming the balanced scorecard from performance measurement to strategic management. Using the balanced scorecard as a strategic management. Translating strategy into action kindle edition by kaplan, robert s. 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. It is based on four balanced perspectives, and links them together with the concept of cause and effect. 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 as a communication protocol for. Linking the balanced scorecard to strategy show all authors. Kaplan y norton comienzan su labor investigadora en 1. Norton s concept of the balanced scorecard revolutionized conventional thinking about performance metrics. However, the balanced scorecard literature provides little discussion of the scorecards role in compensation decisions, despite the fact that the majority of adopters use the scorecard for this purpose towers perrin, 1996. Its objective is to translate an organizations mission and vision into actual operational actions strategic planning. 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. Norton is founder and president of the balanced scorecard collaborative in lincoln, massachusetts. The idea in brief the core idea the idea in practice putting the idea to work 1 article summary 2 putting the balanced scorecard to work a list of related materials, with annotations to guide further. Kaplan is a professor at harvard university and david p. Use features like bookmarks, note taking and highlighting while reading the balanced scorecard. Putting the balanced scorecard to work by robert s. Translating strategy into action, harvard business school press. In addition, it can help provide information on the chosen strategy more.

Strategy mapping was developed by kaplan and norton as an extension to the balanced scorecard and to make implementations of the scorecard more successful. The aim of the balanced scorecard was to align business activities to the vision and strategy of the business, improve. The creators of the strategy map and balanced scorecard concept, professors robert s. The balanced scorecard was developed to measure both current operating performance and the drivers of future performance. Linking the balanced scorecard to strategy robert s. 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. Balanced scorecard main page performance measures main page strategy main page. 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. Balanced scorecard as a strategic management system. David norton as a framework for measuring organizational performance using a more balanced set of performance measures. The balanced scorecard as a performance management tool. I have excerpted below their five futures expansions.

By 1996, user companies had further developed it as a strategic management system linking longterm strategy to shortterm targets. The balanced scorecard bsc translates an organizations mission and strategy into a comprehensive set of performance measures that provides the framework for a strategic measurement and management system. A practitioners guide to the balanced scorecard pdf 268kb. Commentary transforming the balanced scorecard from.

Air force security assistance center foreign military sales center institutionalizes how it develops and executes international agreements by. Although kaplan and norton s work has largely been interpreted and used by practitioners in the area of performance measurement, their balanced scorecard framework, and the processes associated with its production are more fundamentally concerned with strategy articulation and communication. Conceptual foundations of the balanced scorecard 3. Kaplan accounting, harvard and norton, president of renaissance solutions inc. Using the balanced scorecard as a strategic management system. The balanced scorecard was originally developed by dr. Kaplan and nortons future vision of the balanced scorecard. A best practice perspective on managing poor performers.