Key Performance Indicators: Developing, Implementing, and Using Winning KPIs, 3rd Edition

Chapter 18Comparison to Other Methodologies

Overview

This chapter compares the winning KPIs methodology to Kaplan and Norton’s balanced scorecard, Stacey Barr’s PuMP, and Paul Niven’s balanced scorecard work.

There are a number of methodologies which I should address. I am a firm believer that the in-house project team, having researched these methodologies, will follow the one that is best for them. At times it will be necessary to cut an exercise from one methodology and use it with an exercise from another methodology. That is both understandable and desirable.

Main Differences Between the Balanced-Scorecard and Winning-KPIs Methodologies

Right from the start, organizations around the world were quick to see the benefits of a balanced-scorecard approach, and many organizations initiated projects. The groundbreaking work of Kaplan and Norton¹ brought to management's attention the fact that strategy had to be balanced, needed to be implemented, and performance should be measured using a more holistic approach.

Unfortunately, many balanced-scorecard initiatives have failed. So how do you adapt and apply a balanced-scorecard approach and get it right the first time? We need to place sturdier support underneath the balanced-scorecard platform, as set out in Exhibit 18.1.

Exhibit 18.1 Four Supports to Assist the Balanced Scorecard

These four supports have been discussed ...