Gendron, Marie. Using the balanced scorecard.Harvard
Management Update: A Newsletter from Harvard Business School 2, no.10
(October 1997): 7-10.
The balanced scorecard offers a simple method for articulating strategy to employees and then
monitoring the progress toward these goals. The scorecard defines the organization's long-term
strategy in terms of specific, measureable goals in different areas of management (financial,
customer, internal business, innovation and learning). Because the goals are long-term,
management must be willing to change their focus from short-term, usually financial,
objectives.
Hermanson, Dana R. and Heather M. Hermanson. The "balanced scorecard" as a
board tool.Corporate Board 18, no.102 (January-February
1997): 17+.
The author describes a system defining long-term corporate goals, setting the steps to achieve
these goals, and measuring performance toward the objectives using a balanced scorecard
program.
Kaplan, Robert S. Devising a balanced scorecard matched to business
strategy.Planning Review 22, no.5 (September-October, 1994):
15+.
Balanced scorecards are management tools that help evaluate performance and encourage good
planning. Traditional financial measures focus on past transactions and original expenditures
without sufficient focus on long-term benefits.
Kaplan, Robert S. Knowing the score (use of balanced scorecard in evaluating
management tools).Financial Executive 12, no.6
(November-December 1996): 30+.
The balanced scorecard can be used to integrate and evaluate the effectiveness of planning and
financial processes.
Kaplan, Robert S. New systems for measurement and control.Engineering Economist 36, no.3 (Spring 1991): 201-218.
Organizations' attempts to adapt to today's technological capabilities and globally competitive
environment have been affected by out-of-date accounting systems. The author suggests
management accounting systems that will give operational control, add activity-based costing, and
assist capital investment decisions.
Kaplan, Robert S. and David P. Norton. The balanced scorecard - measures that
drive performance.Harvard Business Review 70, no.1
(January-February 1992): 71-79.
This is the authors'summary of the findings of a one-year multicompany study, "Measuring
performance in the organization of the future", documenting the feasibility and the benefits of a
balanced measurement system organized around four distinct views: financial, customer, internal,
and innovation and learning. The scorecard, a set of measurements that gives top managers a fast
but comprehensive view of the organization, is balanced between short- and long-term objectives,
between cost and non-cost measures, between lagging and leading indicators, and between
external and internal performance perspectives. Managers can track measures as they work
toward their objectives. As a result of this article, the authors were asked by a number of
executives to help them implement the Balanced Scorecard in their organizations.
Kaplan, Robert S. and David P. Norton. The Balanced Scorecard - translating
strategy into action. Boston: Harvard Business School, 1996. xi, 322 pp. (Shelved
at HD56.K35 1996).
The rapid evolution of the Balanced Scorecard into a strategic management system is reported on
in this book. The Balanced Scorecard approach retains traditional financial measures which reflect
past organizational achievements, but adds three new measures of future performance found
necessary in this information age with its focus on customer relationships and long-term
capabilities: customer, internal business process, and learning and growth. With these four
perspectives providing the framework for the Balanced Scorecard, organizations can now
measure how they create value for customers, how they can enhance internal competencies, and
how they must invest in people, systems and procedures to improve future performance.
According to the authors, the Balanced Scorecard has evolved from an improved measurement
system to a core management system. For the first time there is a systematic process to implement
and obtain feedback about strategy. This is an excellent introduction to new management
styles.
Kaplan, Robert S. and David P. Norton. Linking the balanced scorecard to
strategy.California Management Review 39, no.1 (Fall 1996):
53, 71-79.
The best Balanced Scorecards combine financial and non-financial measures that are derived from
the organization's strategy. Performance drivers and outcome measures should be linked in
cause-and-effect relationships.
Kaplan, Robert S. and David P. Norton. Putting the Balanced Scorecard to
work.Harvard Business Review 71, no.5 (September-October
1993): 134-147.
The importance of choosing measures based on strategic success is emphasized in this article,
which resulted from Balanced Scorecard experiences tying measures to an organization's strategic
plan. Instead of improving the performance of existing processes, focus must be on those
processes that must be performed exceptionally well for an organization's strategy to
succeed.
Kaplan, Robert S. and David P. Norton. Strategic learning & the balanced
scorecard.Strategy & Leadership 24, no.5 (September-October
1996): 18+.
The Balanced Scorecard (BSC) is a set of performance measures as a model for a strategic
measurement and management system that is based on organizational mission and strategy.
Performance is tracked along the lines of costs, customer service, internal process improvement,
and learning and growth.
Kaplan, Robert S. and David P. Norton. Using the balanced scorecard as a strategic
management system.Harvard Business Review 74, no.1
(January-February 1996): 75+.
Using the Balanced Scorecard as the central organizing framework for important managerial
processes, executives revealed that they were using the Balanced Scorecard not only to clarify and
communicate strategy but also to manage strategy. Intangible assets were seen to be more
important to organizations and the Balanced Scorecard approach was shown to be an important
means of connecting long-term objectives to short-term actions.
Kaplan, Robert S. and David P. Norton. Why does business need a balanced
scorecard? (Part 1).Journal of Strategic Performance
Measurement 1, no.1 (February-March 1997): 5-11.
This article traces the evolution of performance measures from exclusively financial performance
measures toward the balanced set of performance measures that many forward-thinking
organizations are now using. The Balanced Scorecard provides a vehicle to translate performance
measures from four perspectives: financial, customer, internal-business-process, and corporate
learning and growth.
Kaplan, Robert S. and David P. Norton. Why does business need a balanced
scorecard? (Part 2).Journal of Strategic Performance
Measurement 1, no.3 (June-July 1997): 5-10.
This article examines the need for a Balanced Scorecard method of translating strategy into
specific objectives and measures, as well as means of monitoring progress. The Balanced
Scorecard should have an appropriate mix of outcome measures (lagging indicators) and
performance drivers (leading indicators) to describe where a company has been and to point the
way for future growth. Ultimately all measures should be tied to financial objectives but not be
guided solely by them.
Lingle, John H. and William A. Schiemann. From balanced scorecard to strategic
gauges: is measurement worth it?Management Review 85, no.3
(March 1996): 56-61.
Research indicates that measurement plays a critical role in translating business strategy into
desired results. To design a good measurement system there should be an agreed-upon strategy,
clear communication, focus and alignment efforts, and an accepted organizational culture.
Barriers identified included fuzzy objectives, too much reliance on informal feedback systems, and
inadequate measurement systems.
Performance-based management: eight steps to develop and use information
technology performance measures effectively. Washington: GSA, 1996. v, 106 pp.
(Shelved at JK468.A8P47 1996).
The Clinger-Cohen Act requires federal agencies to establish a process of selecting, managing and
evaluating the results of their IT investments and report annually to Congress on progress made
toward agency goals, noting links between IT performance measures and agency programs. This
publication cites the following steps to develop and use IT performance measures effectively: 1)
link IT projects to agency goals and objectives at the beginning planning stage by using a
framework known as the "Balanced Scorecard" providing financial, customer, internal business,
and innovation/learning perspectives; 2) develop performance measures by selecting a limited
number of meaningful measures with a mix of short- and long-term goals which include outcomes,
as well as cost, timeliness and quality and a strong customer focus; 3) establish baselines to
compare future performance in order to determine performance improvement as a result of an IT
investment; 4) select IT projects with the greatest value based on the estimated economic return
of an IT investment plus its estimated contribution to an organization's business priorities; 5)
collect data needed for the chosen indicators; 6) analyze results by conducting measurement
reviews to determine if the project met the objectives and whether the indicators adequately
measured results; 7) integrate with existing management processes so that the results will be used;
8) communicate results to improve coordination and increase the focus of workers and
managers.
Trzcienski, Edward and Brooke Harper. Performance management tools ensure
quality customer service.Journal of Strategic Performance
Measurement 1, no.1 (February-March 1997): 19-24.
Performance management initiatives at this organization include the development of key
performance indicators (KPIs), a performance management system, and process development and
deployment, all of which are linked to customer satisfaction. Training of work teams is essential
when implementing a shared services center.
Willyerd, Karie A. Balancing your evaluation act.Training 34, no.3 (March 1997): 52+.
The balanced scorecard is an evaluation tool which is being used more and more often to measure
performance. The organization's strategy is evaluated by using financial, customer perspective,
and operational measures. Guidelines for using the balanced scorecard are offered in this
article.
