Balanced Scorecard
Balanced Scorecard
Elements of Balanced Scorecard:
Goals & Measures of Financial, Customers, Internal Business Processes, Learning and Growth
Principle:
Balancing financial objectives to critical success factors as process capabilities, customer satisfaction and learning/change
Issues:
Kaplan & Norton, 2002 Five key areas of activity
- Translating vision and strategy into operational terms
- Aligning the organisation to strategy
- Making strategy everyone’s job
- Making strategy a continual process
- Mobilising change trough executive change
Not: quick fix, performance measurement, all organisations
Limitations and dangers: Demands management maturity and flexibility, demands participative management, to many measures, time and effort, potential flexibility lack, internal perspective
Interdependence between the 4 perspectives a strength
Setting up goals, measures, targets, initiatives (milestone targets throughout future years)
Customer perspective example:
Applications:
To secure a few key success measure that make change more likely
To communicate vision, values and strategy to all in organisation
To catalyse culture change
As framework for business planning
Provide KP measures against targets (benchmarks)
Support decision-making by effect evaluation
To provide feedback and learning
Source of Balanced Scorecard:
(Kaplan & Norton, 1992 & 1996)
