What is the Balanced Scorecard?
Developed in the early 1990s by Dave Kaplan and Bob Norton, the “Balanced Scorecard” uses a strategic cycle to ensure that managers deliver their organisation’s vision and mission. The term itself comes from the fact that organisations require a planning and performance system that provides a balance between different perspectives that represent the external and internal pressures facing an organisation (Balanced) and a comprehensive view of the performance of an organisation (Scorecard).
What are its benefits?
- development of clear strategies that drive your organisation forward at every level
- feedback about the effectiveness of business strategy
- permits managers to see their organisation more clearly from many perspectives (e.g. not just financial indicators) so they can make more sound and timely business decisions
- provides diagnostic feedback to guide continuous process improvement
- makes vision and strategy clear to all, which stimulates innovation and allows breakthrough improvement and the appropriate targeting of resources
How we can help you use it effectively
Developing an effective balanced scorecard requires strategic thinking, which can often be difficult without structured facilitation. Our expertise means that we can help you make best use of your management time to create one that really does work for you.
We can help you –
- identify and develop strategic goals, working with your senior management teams
- build scorecards
- develop performance measurement structures and create strategic review processes
- develop communication plans
- train managers and teams in the use of balanced scorecards