We have categorized 2 documents as Balanced Scorecard. All documents are displayed on this page.

The Balanced Scorecard (BSC) is a Strategic Performance Management tool that was developed by Robert Kaplan and David Norton in the early 1990s. Kaplan and Norton were both professors at the Harvard Business School and they developed the Balanced Scorecard as a way to help organizations better align their activities with their strategic goals and objectives. Learn more about Balanced Scorecard.

Did you know?
The average daily rate of a McKinsey consultant is $6,625 (not including expenses). The average price of a Flevy document is $65.


Trusted by over 10,000+ Client Organizations
Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.
AT&T GE Cisco Intel IBM Coke Dell Toyota HP Nike Samsung Microsoft Astrazeneca JP Morgan KPMG Walgreens Walmart 3M Kaiser Oracle SAP Google E&Y Volvo Bosch Merck Fedex Shell Amgen Eli Lilly Roche AIG Abbott Amazon PwC T-Mobile Broadcom Bayer Pearson Titleist ConEd Pfizer NTT Data Schwab




Read Customer Testimonials

  •  
    "As an Independent Management Consultant, I find Flevy to add great value as a source of best practices, templates and information on new trends. Flevy has matured and the quality and quantity of the library is excellent. Lastly the price charged is reasonable, creating a win-win value for "

    – Jim Schoen, Principal at FRC Group
  •  
    "As a small business owner, the resource material available from FlevyPro has proven to be invaluable. The ability to search for material on demand based our project events and client requirements was great for me and proved very beneficial to my clients. Importantly, being able to easily edit and tailor "

    – Michael Duff, Managing Director at Change Strategy (UK)
  •  
    "If you are looking for great resources to save time with your business presentations, Flevy is truly a value-added resource. Flevy has done all the work for you and we will continue to utilize Flevy as a source to extract up-to-date information and data for our virtual and onsite presentations!"

    – Debbi Saffo, President at The NiKhar Group
  •  
    "I have used Flevy services for a number of years and have never, ever been disappointed. As a matter of fact, David and his team continue, time after time, to impress me with their willingness to assist and in the real sense of the word. I have concluded in fact "

    – Roberto Pelliccia, Senior Executive in International Hospitality
  •  
    "FlevyPro provides business frameworks from many of the global giants in management consulting that allow you to provide best in class solutions for your clients."

    – David Harris, Managing Director at Futures Strategy
  •  
    "I am extremely grateful for the proactiveness and eagerness to help and I would gladly recommend the Flevy team if you are looking for data and toolkits to help you work through business solutions."

    – Trevor Booth, Partner, Fast Forward Consulting
  •  
    "I have found Flevy to be an amazing resource and library of useful presentations for lean sigma, change management and so many other topics. This has reduced the time I need to spend on preparing for my performance consultation. The library is easily accessible and updates are regularly provided. A wealth of great information."

    – Cynthia Howard RN, PhD, Executive Coach at Ei Leadership
  •  
    "My FlevyPro subscription provides me with the most popular frameworks and decks in demand in today’s market. They not only augment my existing consulting and coaching offerings and delivery, but also keep me abreast of the latest trends, inspire new products and service offerings for my practice, and educate me "

    – Bill Branson, Founder at Strategic Business Architects



Flevy Management Insights: Balanced Scorecard

The Balanced Scorecard (BSC) is a Strategic Performance Management tool that was developed by Robert Kaplan and David Norton in the early 1990s. Kaplan and Norton were both professors at the Harvard Business School and they developed the Balanced Scorecard as a way to help organizations better align their activities with their strategic goals and objectives.

The BSC is a semi-standard structured report, supported by proven design methods and automation tools, that can be used by managers to keep track of the execution of activities by the staff within their control and to monitor the consequences arising from these actions.

The Balanced Scorecard is a Strategic Planning and Performance Management system that is used extensively in business, government, and nonprofit organizations to align business activities to the vision and strategy of the organization.

The Balanced Scorecard is based on the idea that organizations should measure their performance not just in terms of financial indicators (thus lagging indicators), but also in terms of a broader range of metrics that reflect the organization's strategic priorities. This includes metrics related to Customer Satisfaction, internal processes, learning & growth, and innovation & improvement. By measuring and managing this more comprehensive, more "balanced" set of metrics, organizations can better understand their progress towards achieving their strategic goals and make any necessary adjustments to their activities.

With the scorecard and metrics in place, a organization should adopt a continuous, iterative approach to managing its Strategy and BSC. Though this process of utilizing BSC as part of the Strategy Development and Strategy Deployment process, organizations can achieve such benefits as:

  • Help the management team focus on the execution of their Corporate Strategy.
  • Focus and align an organization towards common goals and objectives.
  • Enable an organization to understand the relationship between measures and performance.
  • Improve communication of organizational priorities across an organization.
  • Help employees to understand and focus on organizational priorities and realize relevant results.
  • Reduce the number of metrics to the few vital key performance indicators.
  • Strengthen and formalizing the project selection process to focus on key capabilities and enablers.

For effective implementation, take a look at these Balanced Scorecard best practices:

Explore related management topics: Strategic Planning Performance Management Strategy Development Corporate Strategy Customer Satisfaction Key Performance Indicators Strategy Deployment Innovation

Integrating Technology in Balanced Scorecard Systems

The advent of advanced analytics and big data has significantly influenced the way organizations implement and benefit from Balanced Scorecard (BSC) systems. In the current digital era, the integration of technology into BSC systems is not just an option but a necessity for enhancing strategic decision-making and operational efficiency. The traditional BSC framework, which focuses on financial, customer, internal process, and learning and growth perspectives, can be significantly enhanced through the use of technology.

The integration of technology enables real-time tracking and analysis of key performance indicators (KPIs), providing executives with timely insights to make informed decisions. For instance, predictive analytics can forecast future trends based on current and historical data, allowing organizations to proactively adjust their strategies. Furthermore, automation tools can streamline data collection and reporting processes, reducing the risk of human error and freeing up time for strategic analysis rather than data management.

However, the challenge lies in selecting the right technology solutions that align with the organization's strategic goals and in ensuring that staff are adequately trained to use these tools effectively. Organizations should conduct a thorough needs assessment and consult with technology experts to identify the most suitable tools. Additionally, investing in training and development programs is crucial to equip employees with the necessary skills. By overcoming these challenges, organizations can leverage technology to enhance their BSC systems, thereby improving strategic alignment and performance.

Explore related management topics: Strategic Analysis Big Data Data Management Analytics KPI

Adapting Balanced Scorecard for Sustainability and Corporate Social Responsibility

In recent years, there has been a growing emphasis on sustainability and Corporate Social Responsibility (CSR) in the business world. This shift reflects a broader understanding that long-term success is not solely determined by financial performance but also by an organization's impact on the environment, society, and governance (ESG) factors. Consequently, adapting the Balanced Scorecard (BSC) framework to include sustainability and CSR metrics is becoming increasingly important for organizations aiming to achieve holistic success.

Incorporating sustainability and CSR into the BSC involves identifying relevant metrics that reflect the organization's commitment to these areas. For example, environmental metrics might include carbon footprint reduction targets, while social metrics could focus on employee engagement scores or community investment initiatives. By integrating these metrics into the BSC, organizations can monitor and manage their performance in these critical areas, ensuring that sustainability and CSR are aligned with overall strategic objectives.

However, organizations may face challenges in defining appropriate metrics and collecting reliable data. To address these challenges, it is advisable to engage with stakeholders, including employees, customers, and community members, to identify relevant sustainability and CSR priorities. Additionally, organizations can leverage industry benchmarks and standards to guide the development of their metrics. By successfully integrating sustainability and CSR into their BSC, organizations can not only enhance their reputation and stakeholder relationships but also drive long-term value creation.

Explore related management topics: Employee Engagement Value Creation Corporate Social Responsibility Sustainability Governance

Enhancing Strategy Communication and Employee Engagement through BSC

Effective communication of strategy and engaging employees in strategic goals are critical components of organizational success. The Balanced Scorecard (BSC) offers a powerful framework for translating strategic objectives into actionable metrics, but its potential to enhance strategy communication and employee engagement is often underutilized. By leveraging the BSC as a communication tool, organizations can ensure that all employees understand how their work contributes to the overall strategic goals, thereby fostering a sense of ownership and alignment.

To maximize the BSC's impact on strategy communication and employee engagement, organizations should focus on simplifying and visualizing strategic objectives and KPIs. This can involve developing clear, concise descriptions of strategic goals and using dashboards and infographics to present KPIs in an accessible format. Additionally, regular strategy review meetings and updates can help keep employees informed about progress towards goals and any strategic adjustments.

However, challenges such as resistance to change and information overload can hinder effective communication and engagement. To overcome these challenges, organizations should prioritize transparent and open communication channels, actively seek employee feedback, and recognize and reward contributions to strategic goals. Furthermore, training programs can equip managers with the skills to effectively communicate strategy and engage their teams. By enhancing strategy communication and employee engagement through the BSC, organizations can drive performance and achieve strategic alignment.

Explore related management topics: Effective Communication Feedback

Balanced Scorecard FAQs

Here are our top-ranked questions that relate to Balanced Scorecard.

How can the Balanced Scorecard be leveraged to support an organization's resilience and adaptability in facing global crises, such as pandemics or climate change?
Leveraging the Balanced Scorecard enhances organizational resilience and adaptability amid global crises through Strategic Planning, Risk Management, and Innovation, ensuring proactive and dynamic strategy evolution. [Read full explanation]
How can the Balanced Scorecard framework be adapted to accommodate the increasing importance of remote work and virtual teams?
Adapting the Balanced Scorecard for remote work involves adding a Technology and Digital Transformation perspective, integrating metrics for Communication and Collaboration, and revising the Learning and Growth perspective to support digital learning and remote corporate culture, ensuring alignment with strategic goals in a remote work environment. [Read full explanation]
How can the Balanced Scorecard framework be leveraged to improve diversity, equity, and inclusion (DEI) within an organization?
Integrating DEI into the Balanced Scorecard involves embedding specific DEI objectives and metrics within its four perspectives—Financial, Customer, Internal Business Processes, and Learning and Growth—to systematically incorporate DEI into strategic planning and performance management, promoting organizational improvement across all areas. [Read full explanation]
How can the Balanced Scorecard be adapted to support remote and hybrid work environments effectively?
Adapting the Balanced Scorecard for remote and hybrid work involves revising performance metrics, integrating new communication and collaboration tools, and prioritizing employee well-being and engagement to align with modern work dynamics. [Read full explanation]

Recommended Documents

Related Case Studies

Balanced Scorecard Implementation for Professional Services Firm

Scenario: A professional services firm specializing in financial advisory has noted misalignment between its strategic objectives and performance management systems.

Read Full Case Study

Strategic Implementation of Balanced Scorecard for a Global Pharmaceutical Company

Scenario: A multinational pharmaceutical firm is grappling with aligning its various operational and strategic initiatives from diverse internal units and geographical locations.

Read Full Case Study

Strategic Balanced Scorecard Reform in Automotive Sector

Scenario: A firm in the automotive industry is struggling to align its performance management systems with its strategic objectives.

Read Full Case Study

Implementation of a Balanced Scorecard for a Technology Startup

Scenario: A rapidly-growing technology startup is facing challenges in effectively aligning its organizational vision with the team's operational activities.

Read Full Case Study

Balanced Scorecard Redesign for Aerospace Leader in North America

Scenario: The organization, a prominent player in the North American aerospace sector, is grappling with the complexities of aligning its strategic objectives with operational outcomes.

Read Full Case Study

Strategic Balanced Scorecard Revamp in Maritime Industry

Scenario: A leading firm in the maritime sector is struggling to align its operational activities with its strategic objectives.

Read Full Case Study

Explore all Flevy Management Case Studies




Flevy is the world's largest knowledge base of best practices.


Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.



Receive our FREE presentation on Operational Excellence

This 50-slide presentation provides a high-level introduction to the 4 Building Blocks of Operational Excellence. Achieving OpEx requires the implementation of a Business Execution System that integrates these 4 building blocks.