The Balanced Scorecard FAQ
Date: Friday, October 01 @ 20:50:09 BST
Topic: The Balanced Scorecard Approach
Our first Balanced Scorecard FAQ has just been published. Acting as a basic introduction, the following is an extract:
1) What is the Balanced Scorecard?
The Balanced Scorecard is a management and measurement approach designed to enable clarification of vision and strategy and translation into action. Or in other words, a method to align business performance with organizational strategy.
2) Is it new?
No. It was originally was developed in the early 90's.
3) Who developed it?
The developers were Dr R Kaplan and Dr D Norton.
4) What exactly does it cover?
Essentially, it specifies that we should view the organization from four different perspectives: Learning and Growth; Business Process; Customer; Financial. From here, we produce metrics, collect data/information and analyze with respect to each.
5) So these perspectives are used to allow us to measure perfomance in different ways?
To a degree. Some allow more meaningful measurement of progress towards achieving vision/mission, others better measurement of drivers for success. Both current perfomance and efforts/ability to improve are monitored. Within the method, each perspective includes objectives, measures, targets and initiatives.
6) Is it widely used?
Yes. The Balanced Scorecard Institute maintains a list of adopters. This includes organizations from across board: banks, universities, power companies, government departments, IT firms, health sector entities, and so on. It is very well established.