The Balanced Scorecard

The Balanced Scorecard is a new approach to strategic management, developed in the early 1990s by Drs. Robert Kaplan and David Norton (Balanced Scorecard Institute 2001). The concept translates the planning perspective of an institution (mission, strategic vision, and goals) into a system of performance indicators that covers all-important perspectives of performance (i.e., finances, users, internal processes, and improvement activities) (Poll 2001, 709). 

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 

For a safety program to be effective, the safety climate needs to be supportive of the program. The safety climate includes management, workers, the physical equipment in the workplace, and the interfaces between the people and the environment. Perception surveys can be used to assess the status of the safety climate in the workplace. Key areas that perception surveys can assess include management support for safety and employees attitudes and beliefs about safety. Environmental conditions and interfaces between equipment and workers can be assessed using various system safety techniques. Examples of system safety techniques include root cause analysis and failure modes and effects analysis. 

Describe the uses of perception surveys for the purpose of measuring safety performance. 

How would one implement a safety performance measurement program that utilizes discrete observation  

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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,... 

The balanced scorecard a change in what performance means and how its is measured... 

A Changing View of Performance Itself The Balanced Scorecard... 

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. 

The balanced scorecard identifies vital figures for answering the following questions ... 

Instead, the direct evaluation of cost drivers is in focus for optimization. Cost drivers are performance measures driving costs or profit but their immediate contribution to total costs/profit cannot be expressed explicitly.For assessing the SC performance diverse performance measurement systems are proposed with many of them relying on the balanced scorecard approach in combination with the SCOR model.Performance measures can be categorized according to the dimensions of the balanced scorecard or... 

See Kaplan et al. (1992) for the seminal work on the balanced scorecard and Bhagwat and Sharma (2007) for performance measurement systems in SCM based on the balanced scorecard approach. See Siirie and Wagner (2008) or Gunasekaran et al. (2004, 2001) and Agami et al. (2012) for an overview of performance measurement systems. 

This chapter defines the term bondholder value and contrasts it with shareholder value. In a second step, the different viewpoints of shareholders and bondholders are examined respectively. The discussion of both parties conflicts of interests concentrates on capital structure, share buybacks, dividend policy, and corporate strategy. As there are also similarities between shareholders and bondholders, instruments of the shareholder value concept that can be used to create bondholder value are described. That includes investor relations, risk management and the balanced scorecard. 

Instruments for implementing shareholder value concepts are investor relations, risk management and the balanced scorecard. These three... 

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

The Balanced Scorecard (BSC) was originally proposed to improve a company s performance measurement. Traditionally, the measurement had been focused only on financial measures. The target of the BSC is to expand the measurement information by adding non-financial, long-term and immaterial factors into the measurement system. Originally the BSC consisted of four measurement perspectives financial perspective, external relations such as customers or partners, internal processes, and learning and growth. (Andersen, Cobbold Lawrie 2001). 

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. 

THE BALANCED SCORECARD BUILDING SERVICE VALUE CHAIN NETWORKS... 

The balanced scorecard model is a highly useful tool that can assist with the focusing, targeting, and delivery of optimized growth approaches for an industry block like the phar-... 

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. 

Kaplan and Norton, whose quotation introduced this chapter, have also developed what is now a widely employed technique called the balanced scorecard. The balanced scorecard, or BSC, also has value in locking in supply chain changes. Use of concepts behind the balanced scorecard approach will also evaluate whether or not actions to support supply chain changes are having the desired effect. 

The BSC approach takes broad corporatewide goals and cascades them down into meaningful measures for departments, groups, and individuals. The balance in the balanced scorecard approach comes from the breadth of the measures. Rather than following the common practice of limiting measurement to financial information, the balance is provided by four perspectives ... 

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. 

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