Kaplan and Norton demonstrate how senior executives in industries such as banking, oil, insurance, and retailing are using the Balanced Scorecard both to guide current performance and to target future performance. They show how to use measures in four categories-financial performance, customer knowledge, internal business processes, and learning and growth-to align individual, organizational, and cross-departmental initiatives and to identify entirely new processes for meeting customer and shareholder objectives.
The authors also reveal how to use the Balanced Scorecard as a robust learning system for testing, gaining feedback on, and updating the organization's strategy. Finally, they walk through the steps that managers in any company can use to build their own Balanced Scorecard.
The Balanced Scorecard provides the management system for companies to invest in the long term-in customers, in employees, in new product development, and in systems-rather than managing the bottom line to pump up short-term earnings. It will change the way you measure and manage your business.
One of the biggest problem in management is that Business Strategy is always good on paper but not in the real world. This is because Business Strategy is made in the board room, isolated from the real world that is the front line and once this strategy is handed down from the top, frontline executives are at a lost on how to execute such a strategy. Balanced Scorecard as a framework links this Strategy – Performance gap. Norton and Kaplan’s other book, “Strategy Map” deals with the development of an “executable” strategy while this book provides the framework for monitoring and controlling of the “performance of strategy”. The book is not for everybody though. Definitely, this is not a book that a non – business or for that matter, even an occasional business reader could appreciate. This is a hard core business book that is most appropriate for those who understand the nuances of Strategy making, Implementation, and Performance management....Continua