The Harvard Business Review identified the Balanced Scorecard "the most influential management idea in the past 75 years". The Balanced Scorecard, which was developed by Robert Kaplan and David Norton, provides a reliable framework to define and implement strategy by linking sets of cause-and-effect relationships across four perspectives: financial, customer, internal process and innovation, learning and growth.
The Balanced Scorecard has proven to be a highly effective tool in driving strategic goals more rapidly throughout the enterprise. By regularly assessing actual performance against targets, the scorecard transforms strategy into a continuous process of adaptation and change. With a strategic management system like the Balanced Scorecard in place, executives can closely monitor the performance of the organisation, test strategic assumptions and respond rapidly to strategic challenges.
The Balanced Scorecard consulting assignment involves a facilitated structured approach, incorporating the following steps:
Education and Training
Defining the different perspectives
Developing strategic objectives and their related measures and targets
Assigning "owners" to strategic objectives
Cascading the scorecard down through the organisation
Regular review and updating of the scorecard including initiatives for future improvement.
This process (outlined below) provides the link between the strategic plan and the changes required at the activity level.
