Bernard morard, alexandru stancu, senior member, iedrc, and christophe jeannette. The balanced scorecard consists of a set of performance measures that give a comprehensive view of the company based on four perspectives figure 1. If the quoted authors are right, the balanced scorecard even resembles a typical management fashion. Kaplan and norton have also written a book on the balanced scorecard to be published in september 1996 by the harvard business school press. Translating strategy into action, harvard business school press, boston usa, 1996. As the title of kaplan and norton s second book highlights, even by 2000 the focus of attention among thoughtleaders was moving from the design of balanced scorecards themselves, towards the use of balanced scorecard as a focal point within a more comprehensive strategic management system. 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. Balanced scorecard companies thrive in the new business environment. Kaplan and norton demonstrate how senior executives in industries such as banking, oil, insurance, and retailing are using the balanced scorecard both to. Commentary transforming the balanced scorecard from.
Scorecard a simplified strategy map source kaplan, norton, 2002. Balanced scorecard certification balanced scorecard institute. Use features like bookmarks, note taking and highlighting while reading the balanced scorecard. Translating strategy into action harvard business school press, 1996. The evaluation of the impact of using balanced scorecard on. The article was based on a multicompany research project to study performance measurement in companies whose intangible assets played a central role in value creation nolan norton institute, 1991. Balanced scorecard s interpretative variability and. It is widely used by organizations as a tool to assess and manage their companies performance.
Kaplan and norton labeled the new tool the balanced scorecard. 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 translates a companys vision and strategy into a coherent set of performance measures. The four perspectives of the robert kaplan and david nortons. Harvard business school press summary by chris hourigan master of accountancy program university of south florida, fall 2002.
Even though it is widely known and used by many companies, the bsc may still fail. A practitioners guide to the balanced scorecard pdf 268kb. Kaplan and norton proposed the bsc balanced scorecard technique as. In 1996, the two authors published a book the balanced scorecard. Putting the balanced scorecard to work by robert s.
What follows, provides guidance and advice on the development and implementation of a balanced scorecard for those organisations considering the introduction of a. In a previous paper kaplan and norton 2001b, we described the role for strategy maps and balanced scorecards to develop performance. A balanced scorecard is a strategy performance management tool a semi standard structured. Communication the balanced scorecard and the decisions and actions that it drives become a mutually reinforcing. The article was based on a multicompany research project to study performance measurement in companies whose intangible assets played a central role in value creation nolan norton. Norton s everal years ago, we introduced the concept of a balanced scorecard for motivating and measuring business unit performance. Focusing your organization on strategywith the brilliantbut.
In this research study the bsc significance has been discussed and analyzed, the. The balanced scorecard has become an increasingly popular performance management and measurement. The scorecard measures organizational performance across four linked perspectives. The balanced scorecardmeasures that drive performance robert s. Norton is founder and president of the balanced scorecard collaborative in lincoln, massachusetts. Its objective is to translate an organizations mission and vision into actual operational actions strategic planning. Using the balanced scorecard as a 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. Aug 27, 2017 the balanced scorecard as a performance measurement book was firstly published back in 1996.
In addition to researching new products, com zations attemp to inject key features into their value panies also. Kaplan and norton recently expanded on their ideas in a book called the balanced scorecard. Kaplan and norton published their ideas in full in the balanced scorecard. 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. They realize that no single measure can protives understand that their organizations measure vide a clear performance target or focus attention on.
The bsc identifies the causeandeffect relations between. Balanced scorecard stepbystep volta river authority. Selanjutnya, kedua tokoh tersebut meluncurkan buku pertama tentang teori ini dengan judul the balanced scorecard translating strategy into action pada tahun 1996. Balanced scorecard bibliography first time with the balanced scorecard kaplan, robert s. Subsequent writing on balanced scorecard by kaplan. We began with the premise that an exclusive reliance on financial measures in a management system is insufficient. David norton and i introduced the balanced scorecard in a 1992 harvard business. Translating strategy into action ebook written by robert s. The four perspectives of the scorecard financial measures, customer knowledge, internal business processes, and learning and growthoffer a balance between shortterm and longterm objectives, between. Pdf the use of balanced scorecard as a tool for performance. It represents a management classic writing that develops a common platform in the middle of conventional and, shortterm faced different management system approaches and a more stabilized attitude towards integrating new measurement types that are.
Financial, customer, internal process, learning and growth. This checklist focuses on the balanced scorecard, which was developed by robert kaplan and david norton in the early 1990s with the aim of providing a balanced view of an organisations performance. The bsc technique was developed by kaplan and norton 1992, 1996 to. Using the balanced scorecard to create corporate synergies kaplan. The four perspectives of the scorecard financial 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 outcomes, and between hard. They appear to be inherent in the bsc due to the way kaplan. Here is the book by the recognized architects of the balanced scorecard that shows how managers can use this revolutionary tool to mobilize their people to. Exclusive reliance on financial indicators could promote behavior that sacrifices longterm value creation for. Using the balanced scorecard as a strategic management system. A 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. The balanced scorecard was developed byrobert kaplan and david norton 1992. Conceptual foundations of the balanced scorecard 3. Download for offline reading, highlight, bookmark or take notes while you read the balanced scorecard.
The bsc technique was developed by kaplan and norton 1992, 1996 to combine financial control measures with nonfinancial control measures. Kaplan is a professor at harvard university and david p. 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. The balanced scorecard bsc is a strategic management system that aims to clarify strategy and to translate it into action kaplan an d norton, 1992, 1996 and 2001, 2004, 2006. Linking the balanced scorecard to strategy robert s. Translating strategy into action kindle edition by kaplan, robert s. Measuring business strategy financial perspective customer perspective internalbusinessprocess perspective learning and growth perspective linking balanced scorecard measures to your strategy structure and strategy pt. Several years ago we introduced the balanced scorecard kaplan and norton 1992. Translating strategy into action in 1996 and it became a business bestseller. 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. Pdf transforming the balanced scorecard from performance. The balanced scorecard measures that drive performance.
Kaplan accounting, harvard and norton, president of renaissance solutions inc. Norton 35 using the balanced scorecard as a strategic management system by robert s. Focusing your organization on strategywith the brilliant. The rapid evolution of the balanced scorecard into a strategic managment system is reported on in this book. Kaplan in pdf or epub format and read it directly on your mobile phone, computer or any device. Norton 19 measuring the strategic readiness of intangible assets by robert s. They must participate voluntarily free of any kind of promises or greediness of. Alignment the balanced scorecard provides a mechanism for aligning the various activities, processes, and groups throughout the organization with the strategic goals and objectives. Pdf performance management and the balanced scorecard in. Since its introduction in 1992 by kaplan and norton, the balance scorecard has evolved to meet managements need to streamline their operations and measure their performance. Copies of the study can be downloaded for free from. Kaplan s most popular book is the balanced scorecard. Norton your balanced scorecard provides a topdown description of your companys strategy and. International conference of the greening of industry network.
417 1181 363 1204 1019 1273 1254 116 969 893 1033 1159 409 1519 889 315 902 800 184 1481 1252 1000