Alignment: Using the Balanced Scorecard to Create Corporate Synergies

CHAPTER 10

TOTAL STRATEGIC ALIGNMENT

THE BALANCED SCORECARD, since its introduction in 1992, has evolved into the centerpiece of a sophisticated system to manage the execution of strategy. The effectiveness of the approach is derived from two simple capabilities: (1) the ability to clearly describe strategy (the contribution of Strategy Maps) and (2) the ability to link strategy to the management system (the contribution of Balanced Scorecards). The net result is the ability to align all units, processes, and systems of an organization to its strategy.

Figure 10-1 describes a simple management framework for strategy execution. The approach adds several important features to the classic “plan-do-check-act” closed-loop, goal-seeking process introduced ...