Balanced Scorecards and Mapping Out Success

1/20/2015

The Balanced Scorecard is a strategic planning and management system that is used extensively in business and industry, government, and nonprofit organizations worldwide to:

  • Align business activities to the vision and strategy of the organization
  • Improve internal and external communications
  • Monitor an organization’s performance against its strategic goals

Robert Kaplan of the Harvard Business School and organizational strategy expert David Norton originated the Balanced Scorecard as a framework that adds strategic, non-financial performance measures to traditional financial metrics. This provides managers and executives with a more “balanced” view of organizational performance.

The Balanced Scorecard suggests that you view your organization from four perspectives – financial performance, efficiency, knowledge and innovation, and satisfaction – and encourages institutional leaders to develop metrics, collect data and analyze it relative to each of these perspectives.

By putting together a Balanced Scorecard, leaders can design their strategic objectives in a strategy map, which will help them target strategic initiatives and plot out performance measures.

Bettina Neidhardt