BNET Business Dictionary
Business Definition for: Balanced Scorecard Approach
- an approach to the provision of information to management in order to assist strategic policy formulation and implementation to build the long-term value of the business. It emphasizes the need to provide the user with a set of information that addresses all relevant areas of performance in an objective and unbiased fashion. The information provided may include financial and non-financial elements and cover areas such as profitability, customer satisfaction, internal efficiency, and innovation. The term originates from the best-selling business book The Balanced Scorecard, written by Robert Kaplan and David Norton and published by Harvard Business School Press in 1996. Their approach applies the concept of stockholder value analysis, and is based on the premise that the traditional measures used by managers to see how well their organizations are performing, such as business ratios, productivity, unit costs, growth, and profitability, are only a part of the picture. Traditional measures are seen as providing a narrowly focused snapshot of how an organization performed in the past, and give little indication of likely future performance. In contrast, the Balanced Scorecard (BSC) offers a measurement and management system that links strategic objectives to comprehensive performance indicators.
Additional Resources
- Measuring The Performance Of The IT Function In The UK Health Service Using A Balanced Scorecard Approach
- This paper explores how the Balanced Scorecard approach might be applied to measuring the performance of an IT department. Sample measures have been developed for each dimension of the scorecard for two key IT functions. A performance measurement record sheet has been developed to show how these measures would work...
- White papers 2004-11-02
- Benefiting from the Balanced Scorecard
- Harvard professors Robert Kaplan and David Norton developed the balanced scorecard to help translate vision and strategy into action. This technique can make strategic planning a core part of any business. They showed that financial analysis, which is largely a look backward over past performance, isn't enough to guide long-term...
- Articles 2007-10-03
- Improve Your Game with a Balanced Scorecard
- Are your business initiatives undermining one another? These greatest hits from the BNET Business Library will show you how to keep your goals aligned. Balanced Scorecard Behaviors Source: Business, The Ultimate Resource Two professors developed the balanced scorecard as an approach to strategic...
- Articles 2007-06-25
- A Balanced Scorecard Approach
- This paper proposes a three-part balanced scorecard-based system — the board-balanced scorecard, corporate balanced scorecard, and executive balanced scorecard integrated into a cohesive information technology foundation. The users of these scorecards are the board of directors, executive management, general managers, and executive staff, respectively. This three-part balanced scorecard system can...
- White papers 2003-10-01
- Balanced Scorecard: Linking Strategic Planning to Measurement and Communication
- This paper discusses issues and strategies in implementing a Balanced Scorecard approach to facilitate strategic planning in a small private university library. Bond University has been using the Balanced Scorecard to measure and manage its performance. One of the challenges in implementing the Balanced Scorecard is selecting appropriate performance measures...
- White papers 2003-07-21
- Improving Corporate Governance: A Balanced Scorecard Approach
- Corporate governance is a matter of enormous public attention and concern. While tough measures such as Sarbanes-Oxley Act and the SEC orders and regulations reforms are necessary, given recent events, they are not sufficient. Corporate leaders need a modern set of tools that provide greater visibility into their organizations and...
- White papers 2003-05-06
- Combining EVA With Balanced Scorecard To Improve Strategic Focus And Alignment
- This paper discusses the potential to combine use of EVA measures of organizational performance with the use of the Balanced Scorecard approach to managing strategic management behaviors. It briefly outlines how the two tools are defined, considers their strengths and weaknesses, and then considers one approach for using the two...
- White papers 2001-01-01
- Improving Corporate Governance With the Balanced Scorecard
- The balanced scorecard approach can be extended to the boardroom in three ways: the enterprise scorecard, which describes the strategy of the organization; the board balanced scorecard, which provides a roadmap to board strategies and responsibilities; and the executive scorecard, which aids in developing executive compensation. The program starts with...
- White papers 2004-03-01
- Balanced Scorecard Behaviors
- Dr. Robert Kaplan and Dr. David Norton developed the balanced scorecard as an approach to strategic management in the early 1990s. This method is not only about measurement, but also about the ability to translate vision and strategy into action. The behaviors needed to support the balanced scorecard...
- Download resources 2006-06-01
- Driving Quality :A Balanced Scorecard Approach
- Balanced Scorecard BS is a methodology of measuring and evaluating the performance of an organization. BS framework helps to ascertain the degree of progress made by the organization in accomplishing its long-term objectives. It measures organizational performance along the perspective of financial, customer, internal process, learning, and growth. The paper...
- Presentations 2003-01-01
- Building Performance Measurement Systems With the Balanced Scorecard Approach
- The Balanced Scorecard BSC methodology has come in for increased attention and growing popularity among Japanese companies. Indeed, the fact that it has been applied to reforms undertaken by a large number of companies during the past several years has contributed to the rapid development of the BSC concept itself....
- White papers 2002-04-01
- The Balanced Scorecard in Government
- In many governmental organizations, early pioneers struggled with the adaptation of the concept to their constituencies. As governments are no strangers to performance measurement, and understand the difficulties inherent in measuring the impact of government policy on various stakeholders, it is understandable that any new or innovative approach to measurement...
- White papers
- Innovations in Corporate Philanthropy: Adopting Balanced Scorecard Methodologies to Build Strategy and Evaluation Systems
- Corporate philanthropy should be seen as social investment rather than charity, and it should be linked to an enhancement of corporate value. To that end, companies must rebuild their social investment mission and clearly reposition it from a management perspective. Strategies must be put in place to efficiently and effectively...
- White papers 2001-12-01
- Know the Score: The Balanced Scorecard Approach to Strategically Assist Clients
- In the early 1990s, there was concern that many senior executives were focusing exclusively on short-term financial measures to the detriment of the long-term success of their firms. In response, David Norton and Robert Kaplan introduced the concept of the Balanced ScoreCard BSC in 1992. BSC is a comprehensive performance...
- White papers
- A Balanced Scorecard Approach To Measure The Value Of Enterprise Architecture
- The value returned by Enterprise Architecture EA is increasingly under consideration by researchers and practitioners. They struggle to justify the EA investments made. Quantifying the Enterprise Architecture benefits has always been a challenge because measurements and real value delivered can not often be expressed in simple technical oriented metrics only....
- White papers 2007-06-06
- Executing Strategy with the Balanced Scorecard
- The originators of the Balanced Scorecard approach to management are at it again with a new book that urges executives to make strategy a continuing process that is embedded deeply throughout the organization. The Execution Premium: Linking Strategy to Operations for Competitive Advantage by Harvard Business School...
- Blog posts 2008-08-14
- Executing Strategy with the Balanced Scorecard
- Executing Strategy with the Balanced ScorecardRE: Executing Strategy with the Balanced ScorecardI consider adapting business to Balanced Scorecard itself is a strategy and the four quadrants for defining objectives is a sure way to paln and align organization using appropriate business systemRE: Executing Strategy with the Balanced ScorecardQuite often a...
- Discussion threads 2008-08-14
- Bringing the Balanced Scorecard to Life: The Microsoft Balanced Scorecard Framework
- This paper describes the Microsoft approach to developing and implementing a Balanced Scorecard for enterprise performance management. It presents basic information on the Balanced Scorecard performance management methodology, and identifies key business issues that must be addressed in developing and deploying a balanced scorecard. The paper then presents the Microsoft...
- White papers 2002-05-01
- Improve Your Game with a Balanced Scorecard
- Improve Your Game with a Balanced ScorecardBalanced ScorecardI'm currently a Business performance Manager Implementing BSC across both a retail and Head office enviroment. I would like to understand and share experiances with other organisationsRegardsFellow UserHi CarlI am using the BSC in an SME with 5 operating divisions and would be...
- Discussion threads 2007-06-26
- The Evolution of the Balanced Scorecard
- The Balanced Scorecard is an approach to measurement. The evolution of the Balanced Scorecard idea began with the injunction that managers ought to measure more than financial results, and proposed a matrix with four types of measures: financial, internal process, innovation and learning, and customer. Initial work focused on how...
- White papers 2003-05-01
