Measurement is an active, dynamic management tool as well as a feedback mechanism.
The Balanced Scorecard transforms an organization’s strategic plan from an attractive but passive document into the ‘marching orders’ for the organization on a daily basis.
Financial reports describe outcomes, but are lagging indicators of business performance.
Kaplan and Norton identified three perspectives of business performance as leading indicators and drivers of the business outcomes – the customer perspective, the internal processes perspective, and the learning and growth perspective.
Non-financial metrics aren’t designed at the coalface for matters that appear to be important at the coalface, but rather are determined by the diligent cascade down from the organization’s vision and strategy.
All metrics must be relevant, all relevant metrics must be visible, and all visible metrics are political.
We need balance, and by definition no one metric can be balanced.
Cause-and-effect must be visible – a good Balanced Scorecard tells the story of the business unit’s strategy.
Strategy must be well described and communicated to secure appropriate organizational alignment.
The strategy map provides the visual framework for integrating the organization’s objectives into the four perspectives of a Balanced Scorecard.
Intangible assets are described in terms of human, information and organization capital.
An outsourced Balanced Scorecard is a failed Balanced Scorecard ...
With Safari, you learn the way you learn best. Get unlimited access to videos, live online training,
learning paths, books, interactive tutorials, and more.