Its objective is to translate an organizations mission and vision into actual operational actions strategic planning. Nortons concept of the balanced scorecard revolutionized conventional thinking about performance metrics. The balanced scorecardmeasures that drive performance robert s. Kaplan and norton 2001 note that bsc facilitates the communication of strategy throughout the organisation, enabling the alignment of per sonal and departmental goals. Kaplan has 46 books on goodreads with 35355 ratings. The balanced scorecard or balance score card is a strategic performance measurement model which is developed by robert kaplan and david norton. Alignment teamwork longterm shareholder value improve cost structure increase asset utilization expand revenue opportunities enhance customer value productivity strategy growth strategy. Norton have had a major impact on how compa nies think about strategy and how they measure the performance of mangers. The balanced scorecard measures that drive performance. Norton, have created a powerful new tool based on their ongoing research. Some o f the authors of this public ation are also w orking on these r elated projects. David norton as a framework for measuring organizational performance using a more balanced set of performance measures. The balanced scorecard addresses an everincreasing accounting problem, measuring current companies using old accounting techniques.
Most organisations consist of multiple business and support units, each populated by highly trained, experienced executives. But often the efforts of individual units are not coordinated, resulting in conflicts, lost opportunities, and diminished performance robert s. 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. Balanced scorecard basics balanced scorecard institute. Commentary transforming the balanced scorecard from. This all started in 1992 when their first article, the balanced scorecard mea. Several years ago we introduced the balanced scorecard kaplan and norton. Using the balanced scorecard to create corporate synergies.
The book provides an excellent complement to the two kaplannorton books by explicating the details and processes that project leaders can follow to implement the balanced scorecard measurement and management system in their organizations. The balanced scorecard economics bibliographies cite. Commentary transforming the balanced scorecard from performance measurement to strategic management. The strategy map allows managers to align investments in people, tech nology and. Read oct 2011 the fourth book in the series by kaplan and norton building on their classic, the balanced scorecard. Norton is founder and president of the balanced scorecard collaborative in lincoln, massachusetts. Using the balanced scorecard as a strategic management system. One element that seems to be missing here is the manner in which, from an alignment perspective, the border between the company and its customers. Balanced scorecard, strategy maps y the strategyfocused organization. Kaplan and norton 1996 suggested that financial measures be supplemented with additional ones that reflect customer satisfaction, internal business processes, and the ability to. Alignment really focuses on how to spread the strategy throughout the organization, as well as to other external stakeholders. The scorecard measures organizational performance across four linked perspectives. The four perspectives of the scorecardfinancial 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.
Winner of the standing ovation award for best powerpoint templates from presentations magazine. I could see, for example, an entire chapter in kaplan and nortons book devoted to web 2. Hoshinkanri and kaplan and norton alignment provide methods for such elaboration. Norton argue that the obligation for this significant alignment lies with company headquarters. But often the efforts of individual units are not coordinated, resulting in conflicts, lost opportunities, and diminished performance.
Measuring the strategic readiness of intangible assets. Kaplan and nortons balanced scorecard approach encourages businesses to analyse and report performance based on four key perspectives financial, customers, internal. Worlds best powerpoint templates crystalgraphics offers more powerpoint templates than anyone else in the world, with over 4 million to choose from. 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. How does the business architecture blueprint help in the definition of measures of progress and measures of.
In 1996, robert kaplan and david norton introduced the balanced. Norton argue that the responsibility for this critical alignment lies with corporate headquarters. Nortons book alignment shows that most organisations consist of multiple departments and operating units which are run by highly trained individuals. Organization alignment explores how the various parts of an organization synchronize their activities. How can the business architecture blueprint help in the execution of these methods. Pdf this study explores the uses of the balanced scorecard bsc as a strategic alignment tool in a large malaysian organization. The framework aligned processes, people, technology, and cul ture to the. 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. 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. Most organizations consist of multiple business and support units, each populated by highly trained, experienced executives. Managing alignment as a process harvard business school. A using the balanced scorecard to create corporate synergies. Communication y q4 q3 q2 channel y y q1 as neededy y the internal it group.
Their new book excerpted here, alignment, tells how to see alignment as a management process. 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. The execution premium is the crowning book of kaplan and nortons series addressing the balanced scorecard and strategy maps. Norton, have created a powerful new tool based on their. Most organizations attempt to create synergy, but in a fragmented, uncoordinated way, say hbs professor robert s. The strategyfocused organization university accounting service.
Theyll give your presentations a professional, memorable appearance the kind of sophisticated look that todays audiences expect. The strategy map allows companies to describe the links between intangible assets and value creation so all aspects of strategy can be implemented in a. The balanced scorecard was originally developed by dr. The strategyfocused organization servicing companies. The balanced scorecard translates a companys vision and strategy into a coherent set of performance measures. Most organizations attempt to create synergy, but in a fragmented, uncoordinated way, a robert s. Traditionally companies used only shortterm financial performance as the measure of success.
Kaplans most popular book is the balanced scorecard. In addition, it can help provide information on the chosen strategy more. Kaplan is a professor at harvard university and david p. The ultimate goal of alignment is business performance. With this paper, we show how organizations use their scorecards to align key management processes and systems to the strategy. Kaplan accounting, harvard and norton, president of renaissance solutions inc. Norton, using the balanced scorecard as a strategic.
On this book, the authors apply their revolutionary balanced scorecard administration system to companydiploma method, revealing how extraordinarily worthwhile enterprises get hold of extremely efficient synergies by. A realand revolutionaryopportunity lies in studying and assessing how well prepared a companys people, systems, and culture are to carry out its strategy. Conceptual foundations of the balanced scorecard 3. David norton and i introduced the balanced scorecard in a 1992 harvard business. The balanced scorecard kaplan and norton, 1992, is one of the most. Ppt robert s kaplan powerpoint presentation free to. How to relate kaplan and nortons alignment process to. 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.
336 842 106 1495 421 1424 646 19 1565 1655 1278 105 346 803 363 926 129 549 1246 966 1653 1297 347 1498 1630 535 306 1199 1481 1460 1602 180 1006 942 565 1299 548 1083 1183 1449 1287 1328 1470 1162 877