Book•
The balanced scorecard : measures that drive performance
17 Apr 2015-
TL;DR: A "balanced scorecard" is developed, a new performance measurement system that gives top managers a fast but comprehensive view of the business and complements those financial measures with three sets of operational measures having to do with customer satisfaction, internal processes, and the organization's ability to learn and improve.
Abstract: Frustrated by the inadequacies of traditional performance measurement systems, some managers have abandoned financial measures like return on equity and earnings per share. "Make operational improvements and the numbers will follow," the argument goes. But managers do not want to choose between financial and operational measures. Executives want a balanced presentation of measures that allow them to view the company from several perspectives simultaneously. During a year-long research project with 12 companies at the leading edge of performance measurement, the authors developed a "balanced scorecard," a new performance measurement system that gives top managers a fast but comprehensive view of the business. The balanced scorecard includes financial measures that tell the results of actions already taken. And it complements those financial measures with three sets of operational measures having to do with customer satisfaction, internal processes, and the organization's ability to learn and improve--the activities that drive future financial performance. Managers can create a balanced scorecard by translating their company's strategy and mission statements into specific goals and measures. To create the part of the scorecard that focuses on the customer perspective, for example, executives at Electronic Circuits Inc. established general goals for customer performance: get standard products to market sooner, improve customers' time-to-market, become customers' supplier of choice through partnerships, and develop innovative products tailored to customer needs. Managers translated these elements of strategy into four specific goals and identified a measure for each.
Citations
More filters
TL;DR: In this article, the authors present a synthesized framework of the innovation management process consisting of seven categories: inputs management, knowledge management, innovation strategy, organizational culture and structure, portfolio management, project management and commercialization.
Abstract: Measurement of the process of innovation is critical for both practitioners and academics, yet the literature is characterized by a diversity of approaches, prescriptions and practices that can be confusing and contradictory. Conceptualized as a process, innovation measurement lends itself to disaggregation into a series of separate studies. The consequence of this is the absence of a holistic framework covering the range of activities required to turn ideas into useful and marketable products. We attempt to address this gap by reviewing the literature pertaining to the measurement of innovation management at the level of the firm. Drawing on a wide body of literature, we first develop a synthesized framework of the innovation management process consisting of seven categories: inputs management, knowledge management, innovation strategy, organizational culture and structure, portfolio management, project management and commercialization. Second, we populate each category of the framework with factors empirically demonstrated to be significant in the innovation process, and illustrative measures to map the territory of innovation management measurement. The review makes two important contributions. First, it takes the difficult step of incorporating a vastly diverse literature into a single framework. Second, it provides a framework against which managers can evaluate their own innovation activity, explore the extent to which their organization is nominally innovative or whether or not innovation is embedded throughout their organization, and identify areas for improvement.
1,219 citations
Cites background from "The balanced scorecard : measures t..."
...Table 2 can be viewed as the basis for a balanced scorecard (Kaplan and Norton 1992) for innovation management, that is, as a balanced set of areas that need to be measured in order to gain insight into an organization’s holistic ability to manage innovation....
[...]
Journal Article•
TL;DR: The authors show step by step how the Mobil division used the map to transform itself from a centrally controlled manufacturer of commodity products to a decentralized, customer-driven organization.
Abstract: If you were a military general on the march, you'd want your troops to have plenty of maps--detailed information about the mission they were on, the roads they would travel, the campaigns they would undertake, and the weapons at their disposal. The same holds true in business: a workforce needs clear and detailed information to execute a business strategy successfully. Until now, there haven't been many tools that can communicate both an organization's strategy and the processes and systems needed to implement that strategy. But authors Robert Kaplan and David Norton, cocreators of the balanced scorecard, have adapted that seminal tool to create strategy maps. Strategy maps let an organization describe and illustrate--in clear and general language--its objectives, initiatives, targets markets, performance measures, and the links between all the pieces of its strategy. Employees get a visual representation of how their jobs are tied to the company's overall goals, while managers get a clearer understanding of their strategies and a means to detect and correct any flaws in those plans. Using Mobil North American Marketing and Refining Company as an example, Kaplan and Norton walk through the creation of a strategy map and its four distinct regions--financial, customer, internal process, and learning and growth--which correspond to the four perspectives of the balanced scorecard. The authors show step by step how the Mobil division used the map to transform itself from a centrally controlled manufacturer of commodity products to a decentralized, customer-driven organization.
1,208 citations
Cites background from "The balanced scorecard : measures t..."
...Kaplan and Norton (2004) have adapted their model to reflect important sectoral differences....
[...]
...Kaplan and Norton (1992) developed the BSC to help managers look beyond financial metrics and physical assets to customerrelated measures and intellectual capital....
[...]
TL;DR: This paper draws on primary and secondary data to propose a taxonomy of strategies, or "schools," for knowledge management to guide executives on choices to initiate knowledge management projects according to goals, organizational character, and technological, behavioral, or economic biases.
Abstract: This paper draws on primary and secondary data to propose a taxonomy of strategies, or schools, for knowledge management. The primary purpose of this framework is to guide executives on choices to initiate knowledge management projects according to goals, organizational character, and technological, behavioral, or economic biases. It may also be useful to teachers in demonstrating the scope of knowledge management and to researchers in generating propositions for further study.
1,200 citations
Cites background from "The balanced scorecard : measures t..."
...scorecard [17] to help managers visualize and operationalize intellectual capital creation....
[...]
TL;DR: A broad review of the current state-of-the-art in business performance measurement can be found in this article, where the authors argue that the changing nature of work, increasing competition, specific improvement initiatives, national and international quality awards, changing organisational roles, changing external demands, and the power of information technology are the main reasons why business performance has become so topical.
Abstract: Asks why business performance measurement has become so topical, so recently. Argues that there are seven main reasons: the changing nature of work; increasing competition; specific improvement initiatives; national and international quality awards; changing organisational roles; changing external demands; and the power of information technology. Evidence to support this assertion is drawn from the academic and practitioner literatures, interviews and discussions with people specialising in the field and a broad review of the current state‐of‐the‐art in business performance measurement. Presents a framework onto which current research in business performance measurement can be mapped and identifies areas which require further work.
1,180 citations
Cites background from "The balanced scorecard : measures t..."
...• Fail to provide information on what customers want and how competitors are performing (Camp, 1989; Kaplan and Norton, 1992)....
[...]
Book•
01 Jan 1994
TL;DR: In this article, special boxed areas focus on four distinct categories in order to teach readers about all the aspects of human resource management, and provide excellent real-business examples to underscore key concepts throughout the text.
Abstract: Throughuot this text, special boxed areas focus on four distinct categories-in order to teach readers about all the aspects of human resource management. These boxes are found in every chapter and provide excellent real-business examples to underscore key concepts throughtout the text.
1,139 citations