The Balanced Scorecard: Translating Strategy into ActionThe Balanced Scorecard translates a company's vision and strategy into a coherent set of performance measures. The four perspectives of the scorecard--financial measures, customer knowledge, internal business processes, and learning and growth--offer a balance between short-term and long-term objectives, between outcomes desired and performance drivers of those outcomes, and between hard objective measures and softer, more subjective measures. In the first part, Kaplan and Norton provide the theoretical foundations for the Balanced Scorecard; in the second part, they describe the steps organizations must take to build their own Scorecards; and, finally, they discuss how the Balanced Scorecard can be used as a driver of change. |
Contents
MEASURING BUSINESS STRATEGY 3 Financial Perspective | |
Customer Perspective | |
InternalBusinessProcess Perspective | |
Learning and Growth Perspective | |
Linking Balanced Scorecard Measures to Your Strategy | |
Structure and Strategy | |
MANAGING BUSINESS STRATEGY 9 Achieving Strategic Alignment From Top to Bottom | |
Targets Resource Allocation Initiatives and Budgets | |
Feedback and the Strategic Learning Process | |
Implementing a Balanced Scorecard Management Program | |
Building a Balanced Scorecard | |
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The Balanced Scorecard: Translating Strategy Into Action Robert S. Kaplan,David P. Norton Limited preview - 1996 |
Common terms and phrases
accounts achieve actions activities alignment approach Balanced Scorecard Bank become budgeting building business unit capital Chapter communicate companies compete competitive continually corporate cost create critical cycle defined deliver delivery departments described discussion effective employees enable entire established example excellent executives existing expected experience Figure financial objectives focus four functional future goals growth half-life Harvard Business identify implementation important improvement included increase indicators individual industry initiatives innovation integrated internal investments lead learning linked long-term management system manufacturing meeting objectives and measures offering operating organization organization’s organizational outcome measures percentage performance performance drivers perspective products and services profitability programs reduce relationships reporting response senior executives share short-term specific Stores strategy success supplier targeted customers translate vision