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. Standard for permanence of paper for publications and documents in libraries. We began with the premise that an exclusive reliance on financial measures in a management system is insufficient. Kaplan and norton continue to discuss the metaphoric recipe of intangible ingredients, such as skill, technology, and the environment internal processes that take place. Norton is founder and president of the balanced scorecard collaborative in lincoln, massachusetts. Norton and kaplan 2001, based on a study including almost 300 executives, stated. Its internal development of a scorecard involved active debates about the strategys objectives and measures, including why certain measures were selected and others excluded. A strategy map is a diagram that is used to document the primary strategic goals.
For example, kaplan and norton 2001 reported that by 2001 about 50% of the fortune companies in north america and 40% to 45% of companies in europe were using the bsc. Click on the graph to download a big strategy map template in. Norton introduced the balanced scorecard, a set of measures that allow for a holistic, integrated view of business performance. This cited by count includes citations to the following articles in scholar. Kaplan and norton offer their services, training and consulting, and conferences on the balanced scorecard and strategy vis the balanced scorecard collabora. According to kaplan and norton 1996, the concept of performance. Kaplan and norton 1996, 2001 extended these ideas by considering a firm that does not yet have agreement about its strategy. Several years ago we introduced the balanced scorecard kaplan and norton 1992. Creating an excelbased balanced scorecard to measure the performance of colleges of agriculture. Balanced scorecard in higher education applied case study on. Financial objectives should be linked to the one corporate strategy with a strong emphasis on the causeandeffect relationships that every change can have. The balanced scorecard or balance score card is a strategic performance measurement model which is developed by robert kaplan and david norton.
Where evaluation determines the success of a programme or campaign. Institute of management accountants 2001 performance. View notes kaplan norton, part ii pdf from buad 250b at university of southern california. A mission is important not only to managers, but to everyone in the organization. Using the balanced scorecard as a strategic management system by robert s. A practitioners guide to the balanced scorecard cima. Kaplan is a professor at harvard university and david p. How to understand a strategy map and the causeandeffect relationships between processes and intangible assets. Creating an excelbased balanced scorecard to measure the. Kaplan and nortons balanced scorecard is a concept still widely used and. The balanced scorecard measures that drive performance. Kaplan and norton published their ideas in full in the balanced scorecard. Kaplan and norton 2001 explicitly recognized the systemic interrelationship within and between four sectors, incorporating both lead and lag indicators, which.
Further reproduction prohibited without permission. In 1996, robert kaplan and david norton introduced the balanced scorecard performance measurement method, which included not only tradi tional financial measures but also such qualitative measures as employee sat isfaction, corporate mission and customer loyalty. However, the most famous management model is the balanced scorecard proposed by kaplan and norton 1992. David norton and i introduced the balanced scorecard in a 1992 harvard. Pdf transforming the balanced scorecard from performance. Norton is founder and president of the balanced scorecard collabo rative in. Its objective is to translate an organizations mission and vision into actual operational actions strategic planning. View notes kaplannorton, part i pdf from buad 250b at university of southern california.
Published pdf deposited in coventry university repository. Using the balanced scorecard as a strategic management system. Norton born 1941 is an american business theorist, business executive and management consultant, known as cocreator, together with robert s. Kaplan and norton grouped their measures into four main groups, also known as perspectives. Financial goals of the business at this stage should emphasize the measurement of the level of revenue or sales growth in targeted markets. The ones marked may be different from the article in the profile. Kaplan and norton articulate the five key principles required for building strategyfocused organizations.
Basu 2001 claims that the factors for longterm growth are always required and. Transforming the balanced scorecard from performance. By the mid1990s other organisational theorists had taken up kaplan and norton s work and modified the design method of balanced scorecards, ironing out early flaws. The strategyfocused organization university accounting service. Financial measures are lag indicators that report on the outcomes from past actions. The application of the balanced scorecard bsc semantic scholar. The strategyfocused organisation request pdf researchgate. Conceptual foundations of the balanced scorecard 3. Commentary transforming the balanced scorecard from. Exclusive reliance on financial indicators could promote behavior that sacrifices longterm value creation for. The strategyfocused organization servicing companies. Growth growth is the first stage and the early stages of a business life cycle. Kaplan and norton offer their consulting services, training, and conferences on the balanced scorecard and strategy via the balanced scorecard collaborative. A study on the use of the balanced scorecard for strategy.
To measure the performance of colleges of agriculture paper presented at american agricultural economics association. The scorecard was originally created to supplement traditional. Using a balanced scorecard for project portfolio management. Strategic management what youll learn in this summary which organizational processes are most critical for enhancing productivity. The end of the cold war, so the argument goes, marked a sea change in how great powers interact with one another. The balanced scorecard as a performance management tool. Documents in econstor may be saved and copied for your. Kaplan has 71 books on goodreads with 34940 ratings.
One should be able to ask about that strategy from each perspective, for instance what does operational excellence mean for our capability, our processes, our customers. In the strategyfocused organization, robert kaplan and david norton share the results of ten years of learning and research into more than 200 companies that have implemented the balanced scorecard. Kaplan is the arthur lowes dickinson professor of the complexity of managing an organization today accounting at the harvard business school. Many in the west seem to believe that perpetual peace among the great powers is finally at hand. Kaplannorton, part ii pdf 2001 american accounting. The balanced scorecard as a performance management tool for third sector organizations. During the past 30 years, much attention has been focused on how companies can formulate new strategies for sustainable advantage. Pdf the balanced scorecard in the public sector organization. Using the balanced scorecard as a strategic management.
This is the most important perspective of the balanced scorecard since it is the measurement basis of all the others. How to understand a strategy map and the causeandeffect relationships. B est of hbr 1992 the balanced scorecard measures that drive performance by robert s. In this first of two articles on strategy development, adapted from kaplan and norton s. Norton 2001 transforming the balanced scorecard from performance measurement to strategic management.