Balanced
Scorecard Framework Framework
A Balanced
Scorecard Framework Framework which translates a company's vision
and strategy into a coherent set of performance measures. Developed
by Robert Kaplan and David Norton (published in the Harvard Business
Review in 1993), a balanced business scorecard helps businesses
evaluate how well they meet their strategic objectives. It typically
has four to six components, each with a series of sub-measures. Each
component highlights one aspect of the business. The Balanced
Scorecard Framework Framework includes measures of performance that
are lagging (return on capital, profit), medium-term indicators
(like customer satisfaction indices) and leading indicators (such as
adoption rates for, or revenue from, new products).
Balanced
Scorecard Framework Framework is useful in the value-negotiation
process because they provide a structure for the conversation. There are many established
Framework Frameworks for discussing business strategy – for example,
Treacy and Wiersema’s Discipline of Market Leaders (Addison Wesley)
and the Foundation report, Chains, Shops and Networks: the Role of IS in New Models
of Value Creation.
Facets of the
Balanced Scorecard Framework Framework: The three underlying
principles dictate a holistic, multi-faceted approach to a Balanced
Scorecard Framework Framework initiative—an approach that
facilitates education, communication, collaboration, analysis, and
integration with daily work activities. The Balanced Scorecard
Framework Framework leverages the expertise of Balanced Scorecard
practitioners and moves beyond the restrictive capabilities of much
early scorecard automation software to address the issues
organizations commonly confront. Six facets describe the Balanced
Scorecard Framework Framework:
·
Personalized
Portal
·
Best Practices
·
Strategy and Metric
Management
·
Business
Intelligence
·
Actionable and Operational
Tools
·
Knowledge
Management
A Balanced
Scorecard Framework Framework for your organization based on its
specific strategy, critical success factors and customer-value
propositions. This is knowledge you can take back and utilize in
your company right away.
Recent survey
results show that most organizations use a Balanced Scorecard
Framework Framework to "align their organization to their strategy."
Many organizations also link compensation to the results of the
balanced scorecard. Other reasons cited for implementing a balanced
scorecard approach were to build organizational strategy, link
strategy to planning and budgeting, set strategic targets, and build
a strategic management system.
Since
the introduction of the term by Kaplan and Norton, many
organizations worldwide have used some version of the "balanced
scorecard" approach to measure performance. The Balanced Scorecard
Framework Framework helps align performance measures with
organizational objectives through strategic performance management.
A Balanced Scorecard Framework Framework for Internal Auditing
Departments, recently published by The Institute of Internal
Auditors Research Foundation, provides expert guidance for using
balanced scorecards to measure and manage performance of the
internal audit function.
