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Twenty years ago, two gents named Robert Kaplan and David Norton introduced a way to integrate measurement and strategy that has passed the test of management fads. Their contribution to proactive organizational management has been substantial, as their Balanced Scorecard approach has pushed companies beyond relying on financial metrics alone to determine the health of their organizations. The Balanced Scorecard challenges managers to consider multiple perspectives when evaluating the health of their organization.

The essence of the scorecard is that it presents managers with four perspectives from which to choose measures: Financial, Customer, Internal Processes, and People and Learning. Traditional metrics focus only on financial measures, which are not applicable for tracking strategic objectives that go outside of the financial sandbox. With the four perspectives above, the scorecard offers a way to measure and manage from a strategic perspective. In fact, you can see the DNA of the scorecard throughout our OnStrategy platform. It also guides the way we approach our consultancy services as well.

So, how can you ensure that you are applying the Balanced Scorecard approach in developing your strategy? Here are a few things to keep in mind:

Congratulations to Kaplan and Norton for providing such a powerful framework that goes beyond financial measures of success. Scores of organizations have applied the principles they set forth in their initial article in Harvard Business Review (January-February 1992, “The Balanced Scorecard- Measures that Drive Performance”), including us here at OnStrategy. Enjoy more on this topic at the OnStrategy resource page.


Are too many of your organization’s strategic objectives centered in one area of business?

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