Thursday, September 22, 2005

Balanced Scorecard for the Unbalanced

As requested by my readers, here is a synopsis of Balanced Scorecard.

Harvard Business Review published the article “The Balanced Scorecard – Measures That Drive Performance” which was jointly written by Dr. David Norton (the then CEO of Nolan-Norton and now President of Balanced Scorecard Collaborative-BSCol) and Professor Dr. Robert Kaplan of the Harvard Business School.

The article summarized the findings from an in-depth study of 12 manufacturing and service companies that was carried out in 1990.

The research program set out to design a new approach to performance measurement that dealt with a growing managerial problem – that accounting, or financial, measures were increasingly being found wanting in assessing and managing organizational performance.

Norton and Kaplan premised that what business leaders required was a new mechanism with which it can take a holistic view of organizational performance, thus, providing more than the lagging financial metrics on which most organizations had based their decisions.

Consequently, Norton and Kaplan introduced a new performance measurement framework, which they anmed it: The Balanced Scorecard

Click here to read more on Scorecard

1 comment:

Miss abigail said...

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