Balanced Scorecard Essay

1147 Words Apr 28th, 2012 5 Pages
Since the 1990s, the Balanced Scorecard system has cut a path in business as a more rigorous way to measure performance by quantifying what had been considered intangible assets, such as human capital, information, and culture. The system draws strength from four perspectives: 1) financial measures; 2) customers; 3) internal processes; and 4) learning and growth. Developed by HBS professor Robert S. Kaplan, chairman of the Balanced Scorecard Collaborative, and David P. Norton, co-founder with Kaplan and president of the Balanced Scorecard Collaborative, the system has led to three books that take the ideas further, starting with The Balanced Scorecard: Translating Strategy into Action (1996) and The Strategy-Focused Organization: How …show more content…
Here is a picture of two employees of the Royal Canadian Mounted Police (RCMP) with their strategy map helping them do their job in the ice fields above the Arctic Circle.
A strategy map also provides the structure for meetings where managers can quickly see which aspects of their strategy are succeeding and where they are falling short. The causal relationships enable managers to test whether the theory of their strategy is valid.
Q: Does it matter what size a company is before it can consider creating a strategy map? At a company, who ideally should be the steward of the strategy map? And, how often can or should the map evolve at a single organization?
A: We have seen strategy maps work extremely effectively in organizations with as few as twenty-five employees, as described in the Boston Lyric Opera case in our new book. And it clearly helps to align the multiple business units and the thousands and tens of thousands of employees in large organizations, as we see in the Thompson Corporation, the U.S. Army, and Ingersoll Rand examples in the book.
Most organizations identify a single person to be the steward or organizer of the strategy map. This person ensures that data are continually fed into the map and Balanced Scorecard to keep them refreshed, organizes the monthly…

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