9
Risks, forecasts, balanced scorecards and KPIs
Better budgeting means going a bit further, not just staying within a limit by making savings and delivering more. What measures can we introduce to improve our budgeting approach? How can reforecasts and Key Performance Indicators (KPIs) help us?
The balanced scorecard and strategy maps
We introduced the balanced scorecard in Chapter 1 and many large organisations use one. The balanced scorecard was developed by Professor Robert Kaplan and Dr David Norton in 1992. It includes a number of simple strategic measures with KPIs.
Each KPI may be cascaded down through the organisation and integrated into budgets. Ideally managers will be able to relate their actions and measures back to the overall ...
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