Kaplan is the baker foundation professor at harvard business school. The balanced scorecard was originally developed by dr. Over a decade ago, kaplan and norton struck a business consulting gold mine with the balanced scorecard later turned into an eponymous book. 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. The strategy and planning office spo, established in 2004 to orchestrate.
In their later publications, kaplan and norton 2001a, 2001b, 2004a, 2004b, 2004c, 2005, 2006. Kaplan has 71 books on goodreads with 35509 ratings. Timedriven activity basedcosting activitybased costing was introduced in the mid1980s through several harvard business school cases and articles. Focusing your organization on strategywith the balanced.
The application of the balanced scorecard bsc semantic scholar. However, since the concept of the bsc is not yet mature, differences in its interpretation and practice have emerged. Perceived benefits of balanced scorecard implementation. The bsc technique was developed by kaplan and norton 1992, 1996 to combine financial control measures with nonfinancial control measures. Converting intangible assets into tangible outcomes, harvard business school press, 2004. It is used for implementing the mission and objectives. The strategyfocused organization the summary in brief in 1996, robert kaplan and david norton introduced the balanced scorecard performance measurement method, which included not. Strategy map financial perspective customer perspective internal perspective learning and growth perspective human capital information capital organization capital. However, what are these performance indicators and how can you measure. The purpose of the bsc is to enable effective monitoring and control of the business. Pdf the application of strategy map in the balanced. Limitations of balanced scorecard marko rillo tallinn. Norton published in 1992 their proposals to the problems that they analysed during two years project that lead to introduction of balanced scorecard concept kaplan and norton, 1992. Measurement and communication strategy maps and balanced scorecards constitute the measurement technology for managing in a knowledgebased economy.
Judgmental effects of performance measures linked to strategy rajiv d. Kaplans most popular book is the balanced scorecard. David norton and i introduced the balanced scorecard in a 1992 harvard business. It is an element of the documentation associated with the balanced. The balanced scorecard or balance score card is a strategic performance measurement model which is developed by robert kaplan and david norton. Effectiveness of the introduction balanced scorecard. It provides the foundation for designing a balanced scorecard that is the cornerstone of a. Norton is a founder and director of the palladium group and is coauthor of the balanced scorecard. A critique of the balanced scorecard as a performance. Kaplan and norton articulate the five key principles required for building strategyfocused organizations. Convert ing intangible assets into tangible outcomes. Norton have had a major impact on how compa nies think about strategy and how they measure the performance of mangers.
Balanced scorecard basics balanced scorecard institute. It not only helps managers focus on measuring and managing strategic areas, but also helps communicate strategy throughout the organisation kaplan and norton. Conceptual foundations of the balanced scorecard 3. The book explains that we are now in the information age. Strategic management what youll learn in this summary which organizational processes are most critical for enhancing productivity. The balanced scorecard addresses an everincreasing accounting problem, measuring current companies using old accounting techniques. Converting intangible assets into tangible outcomes harvard business school press, 2004. Rajiv banker merves chair in accounting and information technology and director of the center for accounting and information technology, fox school of business, temple university verified email at. Balanced scorecard is a management system that enables organizations to translate vision and strategy into action. Norton, using the balanced scorecard as a strategic. In 1996, robert kaplan and david norton introduced the balanced scorecard, a performance. Kaplan and norton 2004 explained that strategy map provides the visual framework for integrating the organizations objectives in the four bsc perspect ives. Norton, have created a powerful new tool based on their. Kaplan and norton define a strategy map as a logical comprehensive architecture for describing strategy.
Converting intangible assets into tangible outcomes. A strategy map is a diagram that is used to document the primary strategic goals being pursued by an organization or management team. Converting intangible assets into tangible outcomes kindle edition by kaplan, robert s. During the past 30 years, much attention has been focused on how companies can formulate new strategies for sustainable advantage. Banker the university of texas at dallas hsihui chang university of california. It is used for implementing the mission and objectives of an organisations business strategy. In this first of two articles on strategy development, adapted from kaplan and norton s. David norton as a framework for measuring organizational performance using a more balanced set of. Timedriven activity based costing cost and profitability. What follows, provides guidance and advice on the development and implementation of. How to understand a strategy map and the causeandeffect relationships between processes and intangible assets. The majority of strategies fail in the strategy implementation phase noble, 1999. Kaplan and norton argue that the most critical aspect of strategyimplementing it in a way that ensures sustained value creationdepends on managing four key internal processes. Converting intangible assets into tangible outcomes harvard business school press, 2004 is a sequel to their classic the balanced scorecard hbsp, 1996.62 558 666 370 982 1170 586 761 190 1640 986 1037 307 733 630 256 901 761 367 1036 313 719 1031 610 329 333 803 1032 1136 1292 1116 228 791 1073 1027 786