Learning and growth perspective archives scontrino. A bain consulting study of large companies in eight industrialized countries found that seven out of eight companies. Traditionally companies used only shortterm financial performance as the measure of success. Norton explain how to correct such organizational misalignment not only within a company but between the firm and its board of directors, investors, customers, and suppliers. The strategy map allows companies to describe the links between intangible assets and value creation so all aspects of strategy can be implemented in a. The balanced scorecard is a clear and effective approach for building alignment between an organizations activities and its overall vision and direction. Nortons concept of the balanced scorecard revolutionized conventional thinking about performance metrics. Strategy maps and balanced scorecards constitute the measurement technology for managing in a knowledgebased economy. A practitioners guide to the balanced scorecard pdf 268kb. The creators of the strategy map and balanced scorecard concept, professors robert s. The balanced scorecard or balance score card is a strategic performance measurement model which is developed by robert kaplan and david norton.
Focusing your organization on strategywith the brilliant. Kaplan and nortons future vision of the balanced scorecard. Commentary transforming the balanced scorecard from. This eightarticle collection features analyses, historical perspectives, and essays by robert kaplan and david norton on their strategy management philosophya philosophy inspired by the field of system dynamics. Robert kaplan and david norton are best known as the originators of the balanced scorecard, a strategic management tool that links a companys current actions with its longterm goals. The creators of the balanced scorecard apply their proven approach to corporate level strategy and offer a framework for aligning all of a companys individual business.
By translating their strategy into the logical architecture of a strategy map and balanced scorecard, organizations create a common understandable point of reference for all their units and employees. Norton examined culture, the first of four components of organization capital. In this book, the authors apply their revolutionary balanced scorecard management system to corporatelevel strategy, revealing how highly successful enterprises achieve powerful synergies by explicitly defining. Norton is founder and president of the balanced scorecard collaborative in lincoln, massachusetts. Norton april 2005 organizations often fail at strategy execution. The balanced scorecard focuses on factors that create longterm value traditional financial reports look backward reflect only the past. The balanced scorecard addresses an everincreasing accounting problem, measuring current companies using old accounting techniques. Kaplan and norton 1996 suggested that financial measures be supplemented with additional ones that reflect customer satisfaction, internal business processes, and the ability to. Kaplan coauthored the strategyfocused organization and strategy maps book with his wellrenowned fellow executive david p.
Norton created the balanced scorecard and strategy maps and have now developed a versatile, sixstage program your corporation can use to mesh its strategy with its operations. The balanced scorecard is one of the most successful and widely used management tools in the world. Most organizations consist of multiple business and support units, each populated by highly trained, experienced executives. These writings offer a rare glimpse of the pairs thinking that is. Read oct 2011 the fourth book in the series by kaplan and norton building on their classic, the balanced scorecard. Palladium execution premium process xppthe six stage management platform based on the kaplannorton strategy management approach. Coined by kaplan and norton 1992 after researching highperforming organizations, the balanced scorecard is just that a scorecard or measurement approach of four balanced. Commentary transforming the balanced scorecard from performance measurement to strategic management. Strategy maps emerged as part of robert kaplans and david nortons seminal work with the balanced scorecard. In a followup to their influential and popular 1996 book the balanced scorecard, harvard business school professor robert kaplan and consultant david norton take their popular ideas about measuring success and show how to build an organization that puts those ideas to use. Converting intangible assets into tangible outcomes harvard business school press, 2004 is a sequel to their classic the balanced scorecard hbsp, 1996. Most organisations consist of multiple business and support units, each populated by highly trained, experienced executives.
Palladium strategy management training is built on the foundations of our thought leadership dr kaplan and dr norton and the management frameworks developed by them balanced scorecard, strategy maps and the xpp. I have excerpted below their five futures expansions. Norton born 1941 is an americanborn business theorist, author, senior executive, and a prominent management consultant he graduated from harvard university, meanwhile obtaining a doctorate of business administration. Measuring the strategic readiness of intangible assets. Norton argue that the responsibility for this critical alignment lies with corporate headquarters. The strategyfocused organization servicing companies.
In this work, the focus is on creating alignment throughout the organization from the executive team, through operational and supporting units, and ultimately to the frontline employee. Kaplan is a professor at harvard university and david p. Norton, have created a powerful new tool based on their ongoing research. Pdf this study explores the uses of the balanced scorecard bsc as a strategic alignment tool in a large malaysian organization. Norton argue that the obligation for this significant alignment lies with company headquarters.
The ultimate goal of alignment is business performance. Here they continue their discussion of the remaining three. Norton, recently wrote an article, the future of the balanced scorecard. Using the balanced scorecard as a strategic management system. The strategyfocused organization, then, comes at an auspicious moment. In addition, it can help provide information on the chosen strategy more. Kaplan and norton 2004 illustrate how intangible and tangible assets can be aligned to create strategic alignment and value for stakeholders, through four perspectives. The balanced scorecard was originally developed by dr. The strategyfocused organization the summary in brief in 1996, robert kaplan and david norton introduced the balanced scorecard performance measurement method, which included not only traditional financial measures but also such qualitative measures as employee satisfaction, corporate mission and customer loyalty. David norton as a framework for measuring organizational performance using a more balanced set of performance measures. Kaplan is baker foundation professor at harvard business school. It combines education, real world experience and certification to enable professionals in both public and private sectors to make strategy happen. The authors maintain that the responsibility for organizational.
Click on the graph to download a big strategy map template in. But often the efforts of individual units are not coordinated, resulting in conflicts, lost opportunities, and diminished performance. Kaplan and norton found that companies are using the bsc to. Alignment really focuses on how to spread the strategy throughout the organization, as well as to other external stakeholders. Using the balanced scorecard to create corporate synergies. A realand revolutionaryopportunity lies in studying and assessing how well prepared a companys people, systems, and culture are to carry out its strategy. Although the previous book of kaplan and norton already spent 64 pages on strategy. Kaplans most popular book is the balanced scorecard. In this way alignment can be created around the strategy, which makes a successful implementation of the strategy more easy. The book explains that we are now in the information age and the old accounting from the industrial age doesnt properly reflect or measure a company. Balanced scorecard basics balanced scorecard institute.
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