PathMaker Project: Balanced Scorecard
The Balanced Scorecard is one of today's hottest management topics. And for good reason...it works. The concept is very simple: Organisations need to know - thoroughly - how they are doing now, and what their prospects are for the future. They need to pick indicators that will give them a good idea of the organisation's fitness and performance. They need to watch the indicators. If the indicators go south, the organisation needs to react.
Interestingly, the balanced scorecard uses the same tools that managers have been harnessing for years: charts, databases, team tools, project management tools, planning tools. There really aren't new building blocks here; but rather a new emphasis on getting an overview, on monitoring, and on balance - making sure you are tracking indicators in key areas.
Robert Kaplan and David Norton have proposed using four main categories of indicators, proxies for gauges that should give you a balanced view of your organisation's health: financial, Internal business processes, learning and growth, customer. These categories are supposed to stem from the company's vision and strategy. For each category, you want to be setting objectives, measuring progress, and taking new steps to improve.
Balanced Scorecard - a Sample Pathway