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the Balanced Scorecard can also include some related names which can be
the same or can be different. Click on Balanced Scorecard FAQ to your right
to find out some of the differences in these related terms.
Balanced Scorecard to be Implemented by 40% of Fortune 1000
Gartner Group: 40% of Fortune 1000 companies will have implemented
Balanced Scorecard by end of 2000.
What Is Balanced Scorecard?
- Translates vision and strategy
- Defines the strategic linkages to integrate performance across
organizations
- Communicates objectives and measures to a business unit, joint venture,
or shared service.
- Aligns strategic initiatives
- Aligns everyone within an organization so that all employees understand
how what they do supports the strategy
- Provides a basis for compensation
- Creates Strategy Maps to visually show connections between goals and
strategy
- Provides feedback to senior management if the strategy is working
Balanced Scorecard: part of Business Performance Management system to
enable organizations to achieve their goals.
Translates strategic business units mission and strategy into a set of
measures built around 4-5 perspectives:
- Financial: How do we look to our shareholders?
- Customers: How do we become our targeted customers most valued supplier?
- Internal Processes: What processes - both long and short term - must we
excel at, to achieve our financial and customer objectives?
- Innovation and Improvement: How can we continue to improve our processes
and systems in order to create value?
- Employee: How does our organization and employees continue to learn and
grow?
Balanced Scorecard Benefits
According to Kaplan & Norton, 1992:
- Make strategy operational by translating strategy into performance measures
and targets.
- Helps focus entire organization on what must be done to create breakthrough
performance.
- Integrates and acts as an umbrella for a variety of often disconnected
corporate programs, such as quality, re-engineering, process redesign, and
customer service.
- Breaks down corporate level measures so local managers, operators, and
employees can see what they must do well in order to improve organizational
effectiveness.
Call John Antos or Steve Peacock to help you with training,
consulting, and review of your Balanced Scorecard at 972.980.7407
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