Business balanced scorecard

D. Norton and R. Kaplan, The balanced scorecard—measures that drive performance, Harvard Business Revue (Jan./Feb. 1992). 

D-2] Kapian, R. S., Norton, D. P., The Balanced Scorecard Translating Strategy into Action, Harvard Business School, Boston,... 

To capture the business opportunities, the procurement team then needs to build a holistic business plan. The business plan mentality is critical, since it will provide the organization with a clear proposal and basis for the decision to allocate necessary resources to the planned efforts. Organizations that have pursued such an approach have created the prerequisites for performance transparency and service-oriented behavior. Possible outcomes depending on the needs of the company and the capabilities developed within procurement can range from a strong procurement network with its own profit and loss statement and balanced scorecard to the creation of a market-oriented profit center unit. The business plan should be focused primarily on value creation rather than cost savings, and should consist of two distinct parts ... 

There are three basic elements to entrepreneurship in chemical production (Fig. 12.6). The first - estabhshing entrepreneurial focus - means that performance targets have to be set which are driven by the capital markets in a participative process starting from the top - that is, at the business unit or divisional level -and which follow through a transparent value-driver tree in order to determine targets for the front line (see Section 12.2.1). The desired end product is a balanced scorecard for each operational unit with a clear Hnk to the overall profitability of the business unit... 

Kaplan, R., and Norton, D. (1995), The Balanced Scorecard, Harvard Business School Press, Boston. Kotter 1. P. (1996), Leading Change, Harvard Business School Press, Boston. 

Figge, F., Hahn, T., Schaltegger, S., Wagner, M., 2002. The sustainability balanced scorecard-linking sustainability management to business strategy. Business strategy and the Environment 11 (5), 269—284. 

Robert S. Kaplan and David P. Norton, The Balanced Scorecard (Boston, MA Harvard Business School Press, 1992). 

Measurement and strategic adjustment of the downstream e-supply chain network and the upstream service provider business remains vital to maintaining and improving competitive positioning. The balanced scorecard offers such measurement dimension. 

Today, various virtual e-services and physical services models may be developed, evaluated, and monitored using a balanced scorecard approach. The service value network concept also fits under this measured strategic decision-making approach. Service value networks house fully integrated e-demand and e-supply chains working in harmony to the deliver both services and e-services. They are also highly agile and offer customer-induced flexible business solutions to customer requests. 

This analytic balanced scorecard framework, originally developed by Kaplan andNorton (1992), is displayed in Figure 12. It delivers the enabling basis from which business industry blocks, like individual pharmacies, may be translated into powerful e-service networks ofmany interlinked data-sharing pharmacies. The business intelligence delivered by such an e-service network and its value adding systems is considerable. 

The service value network integrates the sup-ply-side alliance partners and their associated peripheral partners into a highly competitive cohesive unit, striving to deliver operational and service innovation, cost savings, and value-adding solutions to its diverse customer-demanded business encounters, while the balanced scorecard delivers a set of strategic management control functions. 

Kaplan, R.S., Norton, D.P. (1996). The balanced scorecard Translating strategy into action. Boston Harvard Business School Press. 

The chapter addresses the development cycles of e-services. The service cycles progress from supply and demand chains, to value chains, to service value chains, and finally to service value networks. The service cycles enable service businesses to develop competitive business solutions overtime. The chapter also offers a balanced scorecard mechanism to manage e-services. 

Kaplan, Robert S. and Norton, David P., The balanced scorecard — measures that drive performance, Harvard Business Review, January-February 1992, pp. 71-79. 

The use of metrics has been a hot management topic for several years. This popularity has been fueled by two primary factors. The first is the phenomenal success of a series of articles in the Harvard Business Review and a subsequent book. The Balanced Scorecard, by Kaplan and Norton, which make a case for metrics as a key ingredient for excellence in both operations and strategy. The second is the fact that metrics are easy to implement and produce very clear and measurable results, causing metric success to be largely self-propitiating. 

Balanced scorecard An approach to measurement that cascades measures from the top down through the organization. The method uses four perspectives to achieve balance. These are financial, customer, internal business, and irmovation and learning. 

The balanced scorecard management system provides feedback concerning internal business processes and external outcomes. To improve performance, continuous improvement strategies are incorporated into the model. The process involves a defining the mission and goals for the organization. As with other performance improvement processes, the activities necessary to meet the goals are developed and measures indicative of that performance identified. Continual improvement is incorporated... 

Balanced Scorecard a management system (not only a measurement system) that enables organizations to clarify their vision and strategy and translate them into action. It provides feedback around both the internal business processes and external outcomes in order to continuously improve strategic performance and results. 

As Table 7.1 indicates there are some tools and techniques that are in common use across the operations and production and strategy and marketing and sales functions. The tools and techniques that tend to be used most commonly were clearly those related to performance measurement and IT and Internet business activities. Thus, KPls, E-Business applications, the balanced scorecard, benchmarking and activity based costing are all in use across the three functions. It is clear, however, that the operations and production function has a very high number of tools and techniques that it uses uniquely for its own purposes. This function-specificity is something that recurs when one considers the procurement and supply function. 

In the Balanced Scorecard approach, a business unit s mission and strategy are translated into tangible, measureable objectives. A balance is to be maintained between the outcome measures, the results from past efforts (the lagging indicators), and the measures that drive future performance (the leading indicators.) Operational processes, the authors say, are selected for emphasis that are most critical for achieving breakthrough performance (10). 

A good reference line of key performance indicators of a supply chain is the Balanced Scorecard by Kaplan and Norton (1996). Kaplan and Norton argue that a valuation of intangible assets and company capabilities would be especially helpful since, for information age companies, these assets are more critical to success than traditional physical and tangible assets . The Balanced Scorecard retains traditional financial measures, customer services and resource utilization (internal business process) and includes additional measures for learning (people) and growth (innovation). This approach complements measures of past performance with drivers for future development. 

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