A balanced scorecard is a performance metric used in strategic management to identify and improve various internal functions of a. Balanced scorecard chartered institute of management. Balanced scorecard, customers perceptions, performance management, performance measures, and smallmedium enterprises. The development of the balanced scorecard ukessays.
Kaplans most popular book is the balanced scorecard. Thus, the balanced scorecard is a management concept that emphasizes financial and nonfinancial measurements. The kaplannorton collection 4 books kindle edition by robert s. The balanced scorecard measures that drive performance robert s. Premium kaplanpremium is the crowning book of kaplan and norton s series addressing the balanced scorecard and strategy maps. Kaplan accounting, harvard and norton, president of renaissance solutions inc. Download for offline reading, highlight, bookmark or take notes while you read the balanced scorecard. The balanced scorecard revolutionized conventional thinking about performance metrics. The development of the balanced scorecard as a strategic. Translating strategy into action by kaplan, robert s. Conceptual foundations of the balanced scorecard 3. The balanced scorecard or balance score card is a strategic performance measurement model which is developed by robert kaplan and david norton. The creators of the strategy map and balanced scorecard concept, professors robert s. Its objective is to translate an organizations mission and vision.
The management dictionary covers over 7000 business concepts from 6 categories. The kaplan and norton template, illustrated in figure 1, suggests that a balanced scorecard will comprise of quadrants giving equal consideration to both long term and short term financial performance, customer issues, internal. In the almost 20 years that have passed since its publishing, the balanced scorecard system has. Balanced scorecard, performance management tools, management control systems 1. But how do you actually go about creating this strategy map. In many cases, it is a rehash of the other kaplan and norton works. 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. The balanced scorecard summary how can we describe the balanced scorecard.
Kaplan is a professor at harvard university and david p. Norton, recently wrote an article, the future of the balanced scorecard. Developed by robert kaplan and david norton, the balanced scorecard method translates an. Norton, the balanced scorecard bsc is a revolutionary way to handle strategy management and has been one of the most popular methodologies used over the past three decades. The bsc is a performance measurement system kaplan and norton, 2001a. Track the actions youre taking to improve upon your results. The four perspectives of the robert kaplan and david nortons.
Kaplan and norton found that companies are using the bsc to. The balanced scorecard tracks all the important elements of a companys strategyfrom continuous improvement and partnerships to teamwork and global scale. How balanced scorecard companies thrive in the new business environmenttext only1st first editionhardcover2000. David norton as a framework for measuring organizational performance using a more balanced set of performance measures. Robert kaplan and david norton s balanced scorecard the four perspectives of bsc i n its original version, the balanced scorecard sets out the principles of performance management by balancing four components or perspectives.
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. They had conducted a yearlong study with 12 companies at the leading edge of performance measurement, and devised a balanced scorecardas a result of their research kaplan and norton, 1992, p. Norton, which is also the cofounder, and president of the balanced scorecard groupon. This book is manual for strategists as it brings together all of the current best thinking related to how an organization establishes its strategy, uses strategy maps and leverages balanced scorecards. 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. Balanced scorecard basics balanced scorecard institute. Kaplan, a professor from harvard business school and david p. Browse the definition and meaning of more terms similar to balanced scorecard kaplan norton. A critique of the balanced scorecard as a performance. Based on the wording of the balanced scorecard, balanced means balanced.
Using the balanced scorecard as a strategic management system. Balanced scorecard basics communicat business systems. Its objective is to translate an organizations mission and vision into actual operational actions strategic planning. Balanced scorecard bsc is an important and prime tool used for measuring performance invented by kaplan and norton. 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. Putting the balanced scorecard to work by robert s. It is a performance measurement framework that views an organisations performance from four perspectives. For example, consider the linkages in the service management profit chain. The balanced scorecard measures that drive performance. 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. The balanced scorecard addresses an everincreasing accounting problem, measuring current companies using old accounting techniques. In this work, the focus is on creating alignment throughout the organization from the executive team, through operational and supporting units, and ultimately to the frontline employee. 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. Developed by norton and kaplan at harvard business school, the model ensures that management considers many facets of operations while focusing on its vision.
Putting the balanced scorecard to work article harvard. Financial, customer, internal process, learning and growth. Norton 2001 transforming the balanced scorecard from performance measurement to strategic management. In a previous paper kaplan and norton 2001b, we described the role for strategy maps and balanced scorecards to develop performance objectives and measures linked. Strategy maps and balanced scorecards constitute the measurement technology for managing in a knowledgebased economy. When robert kaplan and david norton first introduced the concept. The balanced scorecard in healthcare clearpoint strategy. The steps involved in strategy mapping at the head of the strategy map is the overriding objective of the organisation which describes how it. Metrics, robert kaplan and david norton suggested four sets of parameters. In 1990, kaplan and norton led a research study of a lot ofcompanies with the purpose of exploring the newmethods of performance measurement. Developed by robert kaplan and david norton, the balanced scorecard method translates an organisations strategy into performance objectives, measures, targets and initiatives. Kaplan is the arthur lowes dickinson professor of accounting at the harvard business school. A practitioners guide to the balanced scorecard pdf 268kb.
This article explains the balanced scorecard, developed by robert kaplan and david norton, in a practical way. Norton s everal years ago, we introduced the concept of a balanced scorecard for motivating and measuring business unit performance. For example, a strategic objective to reduce the typical product. We began with the premise that an exclusive reliance on financial measures in a management system is insufficient. The bsc method of kaplan and norton is a strategic approach and performance management system that enables organizations to translate a companys vision. The balanced scorecard tracks all the important elements of a companys strategyfrom continuous. 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. Financial measures are lag indicators that report on the outcomes from past actions. Strategy mapping was developed by kaplan and norton as an extension to the balanced scorecard and to make implementations of the scorecard more successful.
Using the balanced scorecard as a strategic management system by robert s. The development of bsc as a strategic management tool page 2 of 9. Norton is the president of renaissance solutions, inc. Translating strategy into action ebook written by robert s. Translating strategy into action kindle edition by kaplan, robert s.
Linking the balanced scorecard to strategy strimgroup. Traditionally companies used only shortterm financial performance as the measure of success. Commentary transforming the balanced scorecard from. Strategy execution and the balanced scorecard harvard. Using balance scorecard in educational institutions. Norton ketika anda mencari referensi buku balanced scorecard, anda mungkin akan menemukan karya dari robert s. Rajiv banker merves chair in accounting and information technology and director of the center for accounting and information technology, fox school of business, temple university verified email at temple. The objective was to overcome the inadequacies of the traditional financialbased performance measurement tools. After reading you will understand the basics of this powerful strategy and performance management tool. Norton is founder and president of the balanced scorecard collabo rative in lincoln, massachusetts. Everyday low prices and free delivery on eligible orders. Kaplan and norton balanced scorecard 4 perspectives and. Norton is founder and president of the balanced scorecard collabo rative in lincoln. The balanced scorecard includes financial measures that tell the results of actions already taken.
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. Download it once and read it on your kindle device, pc, phones or tablets. Balanced scorecard and its four 4 perspectives helps in dealing with strategic planning and performance management. Uc san diego was the first university in the nation to adopt the balanced scorecard in 1993 and the first university in the world to be inducted into the balanced scorecard hall of fame. They realize that no single measure can protives understand that their organizations measure vide a clear performance target or focus attention on. It is based on a four dimensional framework, where each dimension represents a different set of. Kaplan and nortons original work makes no specific observations concerning how the balanced scorecard might improve the performance of organisations. Preparation for the exercise includes reading about the bsc or visiting various web sites such as the balanced scorecard collaborative at. Kaplan has 73 books on goodreads with 34849 ratings. Kaplan and norton have published five books, which have marked the evolution of the bsc framework and of its implementation methodology, starting with the balanced scorecard, in 1996 and ending with. Commentary transforming the balanced scorecard from performance measurement to strategic management.
This article also contains a downloadable and editable balanced scorecard template. The balanced scorecard was developed in the early 1990s by two guys at the harvard business school. To put the balanced scorecard to work, companies should articulate goals for time, quality, and performance and service and then translate these goals into specific measures. Palladium strategy management training is built on the foundations of our thought leadership dr kaplan and dr norton and the management frameworks developed by them balanced scorecard, strategy maps and the xpp. Senior managers at eci, for example, established general goals for customer performance. With a balanced scorecard, you have the capability to. Balanced scorecard university of california, san diego. What follows, provides guidance and advice on the development and implementation of a balanced scorecard for those organisations considering the introduction of a.
Read oct 2011 the fourth book in the series by kaplan and norton building on their classic, the balanced scorecard. Several years ago we introduced the balanced scorecard kaplan and norton 1992. Based on extensive field research in organizations worldwide, alignment shows how companies can build an enterpriselevel strategy map and balanced scorecard that clearly articulate the enterprise value proposition. Kaplannorton official balanced scorecard certification boot camp to be held at hotel jw marriott, juhu, mumbai, india, october 8 to 12, 2012 dr robert kaplan dr david norton in association with register today for your opportunity to become kaplannorton balanced scorecard certified the gold standard in balanced scorecard certification. A balanced scorecard is a strategic planning and management system that is used to align business activities to the vision and. I have excerpted below their five futures expansions. Kaplan and nortons future vision of the balanced scorecard. Kaplan and norton focus upon the fact that learning is more than training. The balanced scorecard was developed byrobert kaplan and david norton 1992. The balanced scorecard as a performance management tool for. Balanced scorecard kaplan norton definition marketing. 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. Strategic goals can be monitored using a balanced score card as a strategic management tool as described in the publication of kaplan and norton kaplan and norton 2007.
C o l l e c t i o nilsson circuitos electricos 7a ed pdf n. Use features like bookmarks, note taking and highlighting while reading the balanced scorecard. Think of a balanced scorecard as the instrument panel in the cockpit of an airplane. It is based on four balanced perspectives, and links them together with the concept of cause and effect. Kaplan coauthored the strategyfocused organization and strategy maps book with his wellrenowned fellow executive david p. Introduction the balanced scorecard bsc was founded by kaplan and norton in 1992. Livro 1997 kaplan e norton estrategia em acao balanced scorecard. Pdf transforming the balanced scorecard from performance. Linking the balanced scorecard to strategy robert s. Kaplan started a working group to examine the challenge of reporting only on financial.
The balanced scorecard retains traditional financial measures. Kaplan and norton describe the innovation of the balanced scorecard as follows. Balanced scorecard wirtschaftswissenschaften universitat. Although it started out being used primarily in the private sector, you now see the balanced scorecard in healthcare, nonprofit, and government organizations, as well as a number of other types of associations. Transforming the balanced scorecard from performance. The balanced scorecardmeasures that drive performance robert s. Exclusive reliance on financial indicators could promote behavior that sacrifices longterm value creation for. Introduction kaplan and norton developed the concept of the balanced scorecard bsc in 1992. Niven, 2002, a strategic management system kaplan and norton, 1996a, b, and a communication tool kaplan and norton, 1992. Using the balanced scorecard as a strategic management. David norton and i introduced the balanced scorecard in a 1992 harvard business.