The Balanced Scorecard: Translating Strategy into Action
By: Robert S. Kaplan; David P. Norton;
|Ratings: MUST READ||Right Things: 4.8; Right Way: 5.0; Right Team: 4.8;
|Leadership/Management Maturity:||___ Entry (0–1yrs); ___Early (1–3yrs); ✔ Competent (3-5yrs); ✔ Proficient (5-10yrs); ✔ Expert (10+yrs);|
|Target Audience:||C-Suite, Senior Leadership, Management/Leadership Development|
|Target Business Stage:||Growth Stage; Established Stage;|
|Est. Reading Time:||5-6 hours, 336 pages|
The Balanced Scorecard: Translating Strategy into Action was published in 1996. It introduced an innovative way for business executives to visualize their companies that kept up with the pace at which technology was transforming them. The Balanced Scorecard (often referred to as “BSC”) was quickly embraced by organizations around the world that were struggling to keep their many organizational silos and business units in step with each other and the market.
The Balanced Scorecard’s full impact on modern business thought must also be considered in light of its impact on small and emerging companies. BSC was simple enough that it could be applied to organizations that were trying to find a new path in the emerging economy as well as established companies working to maintain their competitive hold.
BSC helped business leaders view their business units from four coexisting viewpoints:
- Measurement from a Financial Perspective
- Measurement from a Customer Perspective
- Measurements from an Internal Business Processes Perspective
- Measurements from a Learning and Growth Perspective
An entire generation of business strategy consultants rose in the months and years that followed the publication of BSC. It was a powerful tool that helped leaders manage their business strategy and connected to true tactical and execution level functions. When well implemented, BSC allowed organizations to respond to near real-time feedback from the organization that was well-balanced and could be cross-checked for validity and potential impact on the business unit as a whole. Prior to BSC, most companies focused primarily on financial information with very little alternate data to help create context.
In the 20 years since his publication, The Balanced Scorecard has not only remained relevant but has worked its way into the thought process of nearly every organizational leader. While they don’t necessarily adhere to a strict BSC framework, leaders in business, governments, nonprofits, etc. have learned to build data systems and collect information that allows them to understand their organizations from many perspectives. And for that, we have BSC to thank.
|Author:||Robert S. Kaplan; David P. Norton;|
|Author Bios|| Robert S. Kaplan
David P. Norton
|Copyright/Publisher:||Harvard Business Review Press; 1 edition (September 1, 1996)|