Balanced Scorecard

Balanced Scorecard to be Implemented by 40% of Fortune 1000

Gartner Group: 40% of Fortune 1000 companies will have implemented Balanced Scorecard by end of 2000.

What Is 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

Balanced Scorecard: part of Business Performance Management system to enable organizations to achieve their goals.

Translates strategic business units mission and strategy into a set of measures built around 4-5 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

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.

Call John Antos, Steve Peacock, Jim Brimson, or Eleanor Bloxham  to help you with training, consulting, and review of your Balanced Scorecard at 972.980.7407