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Technology Balanced Scorecard
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Technology Balanced Scorecard explained by supply chain management
specialists. Discover what information technology is about, or
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information technology articles and features. Information Technology
Balanced Scorecard also retains traditional financial measures. But
financial measures tell the story of past events, an adequate story
for industrial age companies for which investments in long-term
capabilities and customer relationships were not critical for
success. These financial measures are inadequate, however, for
guiding and evaluating the journey that information age companies
must make to create future value through investment in customers,
suppliers, employees, processes, technology, and
innovation."
Information
Technology Balanced Scorecard, as the name implies, achieves a
balance between these lag indicators and the lead indicators that
need to be focused on to make things happen in any IT company or to
be precise in any company. That's an important distinction. The
Information Technology Balanced Scorecard does not replace financial
measurement. It doesn't replace economic value added. Rather, it
complements it. Measures such as economic value added, which have
received a lot of press lately, suffer from the same shortcomings as
other financial measures. To make them work, organizations still
need to get beneath the surface and say what it is that they do
today to improve economic value added. That really is what a
balanced scorecard does.
A new approach
to strategic management was developed in the early 1990's by Drs.
Robert Kaplan (Harvard Business School) and David Norton. They
named this system the 'Balanced Scorecard'. Recognizing some of the
weaknesses and vagueness of previous management approaches,
Information Technology Balanced Scorecard approach provides a clear
prescription as to what companies should measure in order to
'balance' the financial perspective in an IT
company.
Information
Technology Balanced Scorecard is a management system in an IT
company (not only a measurement system) that enables organizations
to clarify their vision and strategy and translate them into action.
Information Technology Balanced Scorecard provides feedback around
both the internal business processes and external outcomes in order
to continuously improve strategic performance and results. When
fully deployed, the balanced scorecard transforms strategic planning
from an academic exercise into the nerve center of an
enterprise.
Information
Technology Balanced Scorecard also retains traditional financial
measures. But financial measures tell the story of past events, an
adequate story for industrial age companies for which investments in
long-term capabilities and customer relationships were not critical
for success. These financial measures are inadequate, however, for
guiding and evaluating the journey that information age companies
must make to create future value through investment in customers,
suppliers, employees, processes, technology, and
innovation."
Information
Technology Balanced Scorecard, as the name implies, achieves a
balance between these lag indicators and the lead indicators that
need to be focused on to make things happen in any IT company or to
be precise in any company. That's an important distinction. The
Information Technology Balanced Scorecard does not replace financial
measurement. It doesn't replace economic value added. Rather, it
complements it. Measures such as economic value added, which have
received a lot of press lately, suffer from the same shortcomings as
other financial measures. To make them work, organizations still
need to get beneath the surface and say what it is that they do
today to improve economic value added. That really is what a
balanced scorecard does.
Information
Technology Balanced Scorecard benefits: Information Technology
Balanced Scorecard approach enables an organization (public or
private engaging in any IT activity) to introduce a performance
measurement system and also implement a new way of managing its
service delivery. Unlike other methodologies it does not rely solely
on financial indicators but uses a balanced selection of objective
performance measurements to assist managers in developing best value
services. This approach enables you to address the following issues:
- Information
Technology Balanced Scorecard makes strategy operational by
translating strategy into performance measures and targets.
- Information
Technology Balanced Scorecard helps focus entire organization on
what must be done to create breakthrough performance.
- Information
Technology Balanced Scorecard integrates and acts as an umbrella
for a variety of often disconnected corporate programs, such as
quality, re-engineering, process redesign, and customer service.
- Information
Technology Balanced Scorecard breaks down corporate level measures
so local managers, operators, and employees can see what they must
do well in order to improve organizational effectiveness.
