Robert samuel kaplan born 1940 is an american accounting academic, and emeritus professor of leadership development at the harvard business school, known as cocreator, together with david p. Commentary transforming the balanced scorecard from. This book is manual for strategists as it brings together all of the current best thinking related to how an organization establishes its strategy, uses strategy maps and leverages balanced scorecards. Norton, using the balanced scorecard as a strategic. Conceptual foundations of the balanced scorecard 3. Theyll give your presentations a professional, memorable appearance the kind of sophisticated look that todays audiences expect. Most organisations consist of multiple business and support units, each populated by highly trained, experienced executives. Using the balanced scorecard as a strategic management system. Kaplan is a professor at harvard university and david p. David norton as a framework for measuring organizational performance using a more balanced set of performance measures. But often the efforts of individual units are not coordinated, resulting in conflicts, lost opportunities, and diminished performance robert s. Managing alignment as a process harvard business school.
Commentary transforming the balanced scorecard from performance measurement to strategic management. Read oct 2011 the fourth book in the series by kaplan and norton building on their classic, the balanced scorecard. One element that seems to be missing here is the manner in which, from an alignment perspective, the border between the company and its customers. Several years ago we introduced the balanced scorecard kaplan and norton. Using the balanced scorecard to create corporate synergies. Winner of the standing ovation award for best powerpoint templates from presentations magazine. Kaplans most popular book is the balanced scorecard. Most organizations attempt to create synergy, but in a fragmented, uncoordinated way, a robert s. Pdf strategic alignment is a topic which has received considerable attention. How can the business architecture blueprint help in the execution of these methods. The balanced scorecard economics bibliographies cite. 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. Nortons concept of the balanced scorecard revolutionized conventional thinking about performance metrics.
Norton, have created a powerful new tool based on their ongoing research. The balanced scorecard translates a companys vision and strategy into a coherent set of performance measures. In 1996, robert kaplan and david norton introduced the balanced. The framework aligned processes, people, technology, and cul ture to the. The balanced scorecard bsc translates an organizations mission and strategy into a comprehensive set of performance measures that provides the framework for a strategic measurement and management system. Their new book excerpted here, alignment, tells how to see alignment as a management process. The balanced scorecard addresses an everincreasing accounting problem, measuring current companies using old accounting techniques. Pdf this study explores the uses of the balanced scorecard bsc as a strategic alignment tool in a large malaysian organization. They realize that no single measure can protives understand that their organizations measure vide a clear performance target or focus attention on.
The balanced scorecardmeasures that drive performance robert s. Kaplan has 46 books on goodreads with 35355 ratings. Its objective is to translate an organizations mission and vision into actual operational actions strategic planning. Alignment teamwork longterm shareholder value improve cost structure increase asset utilization expand revenue opportunities enhance customer value productivity strategy growth strategy. Norton have had a major impact on how compa nies think about strategy and how they measure the performance of mangers. Communication y q4 q3 q2 channel y y q1 as neededy y the internal it group. Balanced scorecard, strategy maps y the strategyfocused organization. This all started in 1992 when their first article, the balanced scorecard mea. The balanced scorecard was originally developed by dr. The scorecard measures organizational performance across four linked perspectives.
Hoshinkanri and kaplan and norton alignment provide methods for such elaboration. How does the business architecture blueprint help in the definition of measures of progress and measures of. The book provides an excellent complement to the two kaplannorton books by explicating the details and processes that project leaders can follow to implement the balanced scorecard measurement and management system in their organizations. The strategyfocused organization university accounting service. Measuring the strategic readiness of intangible assets. Sustainability and the balanced scorecard vie w project gavin j g lawrie london business school 17 publica tions487. 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. The balanced scorecard or balance score card is a strategic performance measurement model which is developed by robert kaplan and david norton. Most organizations consist of multiple business and support units, each populated by highly trained, experienced executives. A using the balanced scorecard to create corporate synergies. Some o f the authors of this public ation are also w orking on these r elated projects.
Ppt robert s kaplan powerpoint presentation free to. Organization alignment explores how the various parts of an organization synchronize their activities. Nortons book alignment shows that most organisations consist of multiple departments and operating units which are run by highly trained individuals. On this book, the authors apply their revolutionary balanced scorecard administration system to companydiploma method, revealing how extraordinarily worthwhile enterprises get hold of extremely efficient synergies by. Most organizations attempt to create synergy, but in a fragmented, uncoordinated way, say hbs professor robert s. Kaplan and norton 2001 note that bsc facilitates the communication of strategy throughout the organisation, enabling the alignment of per sonal and departmental goals. The execution premium is the crowning book of kaplan and nortons series addressing the balanced scorecard and strategy maps. Traditionally companies used only shortterm financial performance as the measure of success. The four perspectives of the scorecardfinancial measures, customer knowledge, internal business processes, and learning and growthoffer a balance between shortterm and longterm objectives, between outcomes desired and performance drivers of those outcomes, and.
How to relate kaplan and nortons alignment process to. The strategy map allows managers to align investments in people, tech nology and. But often the efforts of individual units are not coordinated, resulting in conflicts, lost opportunities, and diminished performance. A realand revolutionaryopportunity lies in studying and assessing how well prepared a companys people, systems, and culture are to carry out its strategy. Kaplan and nortons balanced scorecard approach encourages businesses to analyse and report performance based on four key perspectives financial, customers, internal. Norton argue that the obligation for this significant alignment lies with company headquarters. Kaplan and norton 1996 suggested that financial measures be supplemented with additional ones that reflect customer satisfaction, internal business processes, and the ability to. Norton is founder and president of the balanced scorecard collaborative in lincoln, massachusetts. Balanced scorecard basics balanced scorecard institute. With this paper, we show how organizations use their scorecards to align key management processes and systems to the strategy.
The balanced scorecard kaplan and norton, 1992, is one of the most. The strategyfocused organization servicing companies. I could see, for example, an entire chapter in kaplan and nortons book devoted to web 2. The balanced scorecard measures that drive performance. In addition, it can help provide information on the chosen strategy more. Norton, have created a powerful new tool based on their. Worlds best powerpoint templates crystalgraphics offers more powerpoint templates than anyone else in the world, with over 4 million to choose from. Kaplan accounting, harvard and norton, president of renaissance solutions inc. 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. Alignment really focuses on how to spread the strategy throughout the organization, as well as to other external stakeholders.
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. David norton and i introduced the balanced scorecard in a 1992 harvard business. Norton argue that the responsibility for this critical alignment lies with corporate headquarters. The ultimate goal of alignment is business performance.