HBR's 10 Must Reads on Strategy 2-Volume Collection

Using the Balanced Scorecard as a Strategic Management System

by Robert S. Kaplan and David P. Norton

AS COMPANIES AROUND the world transform themselves for competition that is based on information, their ability to exploit intangible assets has become far more decisive than their ability to invest in and manage physical assets. Several years ago, in recognition of this change, we introduced a concept we called the balanced scorecard. The balanced scorecard supplemented traditional financial measures with criteria that measured performance from three additional perspectives—those of customers, internal business processes, and learning and growth. (See “Translating vision and strategy: Four perspectives.”) It therefore enabled companies to track ...