Enterprise 2.0

Chapter 8

Social Performance Measurement and Management

Robert S. Kaplan and David P. Norton developed the Balanced Scorecard approach in the early 1990s to compensate for their perceived shortcomings of using only financial metrics to judge corporate performance. They recognized that in this new economy it was also necessary to value intangible assets. Because of this, they urged companies to measure such esoteric factors as quality and customer satisfaction. By the mid-1990s, the Balanced Scorecard became the hallmark of a well-run company. Kaplan and Norton often compare their approach to managing a company to that of pilots viewing assorted instrument panels in an airplane cockpit—both have a need to monitor multiple aspects of their working ...