Value Creation Group®, Inc.  [ Home ] [ Sitemap ] [ Search ] [ Consultants ] [ Contact Us ] [ Clients ] [ Back ] [ Up ] [ Next ]

Activity Based Costing
Activity Based Management
Activity Based Budgeting
Balanced Scorecard
Bibliography
News
Performance Managemement
Reengineering
Services
Links
Aboout Us

Balanced Scorecard

Balance Scorecard to be Implemented by 40% of Fortune 1000

According to Gartner Group, 40% of Fortune 1000 companies will have implemented Balanced Scorecard by year 2000.

What Is the Balanced Scorecard?

The Balanced Scorecard:

  • Translates vision and strategy 
  • Defines the strategic linkages to integrate performance across organizations. 
  • Communicates objectives and measures to a business unit, joint venture, or shared service.
  • Aligns strategic initiatives
  • Aligns everyone within an organization so that all employees understand how what they do supports the strategy
  • Provides a basis for compensation
  • Provides feedback to senior management if the strategy is working

The Balanced Scorecard is part of a Performance Management system to enable organizations to acheive their goals.

The balanced scorecard translates a straategic business units mission and strategy into a set of measures built around four or five perspectives:

  • Financial: How do we look to our shareholders?
  • Customers: How do we become our targeted customers most valued supplier?
  • Internal Processes: What processes - both long and short term - must we excel at, to achieve our financial and customer objectives?
  • Innovation and Improvement: How can we continue to improve our processes and systems in order to create value?
  • Employee: How does our organization and employees continue to learn and grow?

Balanced Scorecard Benefits

Balanced Scorecard benefits according to Kaplan & Norton, 1992:

  • Make strategy operational by translating strategy into performance measures and targets.
  • Helps focus entire organization on what must be done to create breakthrough performance.
  • Integrates and acts as an umbrella for a variety of often disconnected corporate programs, such as quality, re-engineering, process redesign, and customer service.
  • Breaks down corporate level measures so local managers, operators, and employees can see what they must do well in order to improve organizational effectiveness.

Balanced Scorecard Book

Kaplan, Robert S. and David Norton, Translating Strategy Into Action The Balanced Scorecard (Boston, MA: HBS Press 1997)

Balanced Scorecard Articles

Chow, Chee W., Kamal M. Haddad, and James E. Williamson, "Applying the Balanced Scorecard to Small Companies", Management Accounting, August 1997, p. 21.

Curtis, Carey C. and Lynn W. Ellis, "Balanced   Scorecard For New Product Development", Journal of Cost Management, May/June 1997 Vol. 11, No. 3

Drucker, Peter F., "The Theory of Business", Harvard Business Review, Sep.-Oct. 1994, p. 95.

Epstein, Mark J. and Jean-Francois Manzoni, "The Balanaced Scorecard and Tableau De Bord: Translating Strategy into Action", Management Accounting, August 1997, p. 28.

Gaiss, Michael, "Enterprise Performance Management", Management Accounting, December 1998, p. 44.

Hoffecker, John & Charles Goldenberg, "Using Balanced Scorecard to Develop Companywide Performance Measures", Journal Cost Management, Warren, Gorham, & Lamont, Vol 8, No. 3, Fall, 1994

Kaplan, Robert S. and David P. Norton, "Why Does Business Need A Balanced Scorecard (Part 2)", Journal of Strategic Performance Measurement, Jun/Jul 1997 Vol. 1, No. 3, p. 5.

Kaplan, Robert and David Norton, " Why Does Business Need A Balanced Scorecard", Journal of Cost Management, May/June 1997 Vol 11, No. 3

Kaplan, Robert S. and David P. Norton, "Why Does Business Need A Balanced Scorecard", Journal of Strategic Performance Measurement, Feb/Mar 1997 Vol. 1, No. 1, p. 5.

Kaplan, Robert and David Norton, "The Balanced Scorecard--Measures That Drive Performance", Harvard Business Review, January-February 1992, p. 71.

Kaplan, Robert and David Norton, "Using the Balanced Scorecard As a Strategic Management System", Harvard Business Review, January-February 1996, p. 75

Kaplan, Robert and David Norton, Putting the Balanced Scorecard to Work, Harvard Business Review, September-Oct. 1993, p. 134.

Maisel, Larry , "Performance Measurement: The Balanced Scorecard Approach", Journal Of Cost Management, Warren, Gorham, & Lamont, Volume 6, No. 2, Summer, 1992, p. 47.

Porter, Michael E., "What is Strategy"What is Strategy", Harvard Business Review, Nov.-Dec. 1996, p. 61

Schneiderman, Arthur, "Why Balanced Scorecards Fail", Strategic Performance Measurement, January 1999, Special Edition

Silk, Scott, "Automating the Balanced Scorecard", Management Accounting, May 1998, p. 38.

Thomson, Jeff and Steve Varley, "Developing A Balanced Scorecard at AT&T", Journal of Strategic Performance Measurement, Aug/Sep 1997 Vol. 1, No. 4, p. 14.

Balanced Scorecard Training and Seminars

Learn how to implement the Balanced Scorecard is our practical, hands-on three day training seminar.  In this seminar, your organization will actually start the process of implementing the Balanced Scorecard.  We will discuss the steps that will everyone will understand the steps that will be used to implement this very practical techniques.

Call John Antos to help you with training, consulting, and review of your Balanced Scorecard at 972.980.7407

[ Back ] [ Home ] [ Next ]

Send email to:  john.antos@activitybasedmgmt.com
Copyright © 1999-2005 Value Creation Group, Inc.
Last modified: December 09, 2005