Kaplan and nortons 1996a research highlights the cause and effect linkages between the measures in the various quadrants. The bsc technique was developed by kaplan and norton 1992, 1996 to combine financial control measures with nonfinancial control measures. Pilots need information related to factors such as fuel levels, airspeed, altitude, bearing and destination. Linking the balanced scorecard to strategy strimgroup. Executive performance needs to be judged on success at meeting a mix of both financial and nonfinancial measures to effectively operate a business. By translating their strategy into the logical architecture of a strategy map and balanced scorecard, organizations create a common understandable point of reference for all their units and employees. The scorecard measures organizational performance across four linked perspectives. A practitioners guide to the balanced scorecard cima. Commentary transforming the balanced scorecard from. They realize that no single measure can protives understand that their organizations measure vide a clear performance target or focus attention on.
The strategyfocused organization servicing companies. The balanced scorecardmeasures that drive performance. The strategyfocused organization the summary in brief in 1996, robert kaplan and david norton introduced the balanced scorecard performance measurement method, which included not only traditional financial measures but also such qualitative measures as employee satisfaction, corporate mission and customer loyalty. The balanced scorecard measures that drive performance. The balanced scorecard includes financial measures these reveal the results of actions already taken and nonfinancial measures these.
In addition, it can help provide information on the chosen strategy more. In a previous paper kaplan and norton 2001b, we described the role for strategy. The aim of the balanced scorecard was to align business activities to the vision and strategy of the business, improve. 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. Other factors in the new economy such as competence and knowledge. This cited by count includes citations to the following articles in scholar. Kaplans most popular book is the balanced scorecard. Linking the balanced scorecard to strategy robert s.
It not only helps managers focus on measuring and managing strategic areas, but also helps communicate strategy throughout the organisation kaplan and norton, 1996. Its objective is to translate an organizations mission and vision into actual operational actions strategic planning. In his opening speech at the global conference on reinventing government, vice president al gore stated that if we want our government to be accountable for every taxpayers dime, then we need a workforce that will be held accountable for real results. These financial measures are inadequate, however, for guiding and evaluating the journey that. Kaplan and norton point out that the operational measures drive financial performance. Traditionally companies used only shortterm financial performance as the measure of success. Kaplan accounting, harvard and norton, president of renaissance solutions inc. The balanced scoreboard is a tool devised by harvard business school professors, drs. David norton and i introduced the balanced scorecard in a 1992 harvard business. What follows, provides guidance and advice on the development and implementation of a balanced scorecard for those organisations considering the introduction of a. Balanced scorecard main page performance measures main page. Using the balanced scorecard as a strategic management.
The balanced scorecardmeasures that drive performance robert s. Translating strategy into action ebook written by robert s. Developed by robert kaplan and david norton, the balanced scorecard method translates an. It is used for implementing the mission and objectives of an organisations business strategy. Using the balanced scorecard as a strategic management system. Origins of the balance scorecard method the balanced scorecard was developed by robert kaplan and david norton 1992.
Despite the best intentions of those at the top, lofty. Robert samuel kaplan born 1940 is an american accounting academic, and emeritus professor of leadership development at the harvard business school, known as cocreator, together with david p. The balanced scorecard by kaplan and norton 1996 the norton intro. As part of performance management it is generally agreed that a system should include financial performance indicators and nonfinancial ones. The balanced scorecard as a performance management tool. Kaplan and norton 2001 the balanced scorecard by kaplan and norton pdf translating strategy into action. The balanced scorecard was originally developed by dr.
Kaplan and norton recently expanded on their ideas in a book called the balanced scorecard. The balanced scorecard by kaplan and norton 1996 balanced scorecard balanced scorecard for government example balanced scorecard ppt download balanced scorecard for government balanced scorecard pdf ebook. Robert kaplan and david norton, to track a firms performance and takes into account process, innovation and. Kaplan has 46 books on goodreads with 35355 ratings. Selanjutnya, kedua tokoh tersebut meluncurkan buku pertama tentang teori ini dengan judul the balanced scorecard translating strategy into action pada tahun 1996.
Putting the balanced scorecard to work by robert s. The balanced scorecard by kaplan and norton pdf translating strategy into action. Norton s everal years ago, we introduced the concept of a balanced scorecard for motivating and measuring business unit performance. The balanced scorecard focuses on factors that create longterm value traditional financial reports look backward reflect only the past. David norton as a framework for measuring organizational performance using a more balanced set of performance measures. Reprinted by permission of harvard business school press.
Conceptual foundations of the balanced scorecard 3. Effectiveness of the introduction balanced scorecard. The article was based on a multicompany research project to study performance measurement in companies whose intangible assets played. Strategy maps and balanced scorecards constitute the measurement technology for managing in a knowledgebased economy. Kaplan is a professor at harvard university and david p. Measuring business strategy financial perspective customer perspective internalbusinessprocess perspective learning and growth perspective linking balanced scorecard measures to your strategy structure and strategy pt. The balanced scorecard is an attempt to incorporate both. The authors use navigating and flying an airplane to illustrate the concept. 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.
How balanced scorecard companies thrive in the new business environment. Kaplan and norton 1996 view financial systems as telling the the story of past events, an adequate story for industrial age companies for which investments in long term capabilities and customer relations were not critical for success. Kaplan y norton comienzan su labor investigadora en 1. Translating strategy into action harvard business school press, 1996.
The authors proposed that financial measures alone were not sufficient to measure performance. 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, and typically. Download for offline reading, highlight, bookmark or take notes while you read the balanced scorecard. Commentary transforming the balanced scorecard from performance measurement to strategic management. Includes index measurement and management in the information age why does business need a balanced scorecard. Summary by chris hourigan master of accountancy program university of south florida, fall 2002. The balanced scorecard or balance score card is a strategic performance measurement model which is developed by robert kaplan and david norton. Norton is founder and president of the balanced scorecard collaborative in lincoln, massachusetts. In 1990, kaplan and norton led a research study of a lot of companies with the purpose of exploring the new methods of performance measurement. Nortons concept of the balanced scorecard revolutionized conventional thinking about performance metrics.238 1304 1413 1189 1456 353 1044 1114 1452 1157 25 1249 1417 711 1004 599 744 1405 1365 1010 1035 225 258 100 1462 216 1388 1458 1418 865 1455 1028 492 634 526 785 453