Robert S. Kaplan and David P. Norton’s 1996 book ‘’The Balanced Scorecard: Translating strategy into action” is considered to be a major contribution to the development of performance management, as their work has changed the way performance is measured. In the almost 20 years that have passed since its publishing, the Balanced Scorecard system has been implemented by thousands of companies and organizations worldwide, proving its value in time.
Archive for the ‘Balanced Scorecard’ Category
The recent surge in emphasizing strategic planning and performance management in companies, regardless of their geographical location, turnover or maturity has led to an increase in the use of ‘strategy jargons’ across almost all media and communication channels. One of the most common terms that are used is Balanced Scorecard (BSC).
What exactly is the Balanced Scorecard, how was it developed, by whom, and maybe most importantly, how does it add value to an organization, are unfortunately mostly unanswerable questions for a large part of its users.
In order to provide a starting point for all that have an unclear overview regarding the Balanced Scorecard I propose answering the above questions. (more…)
Sunrise Health Region is one of the 13 health regions in the Province of Saskatchewan, Canada. Their mission is to “improve the health and well-being of individuals and communities through leadership, collaboration and the provision of high quality health services”.
The Sunrise Regional Health Authority is responsible for planning, organizing, delivering and evaluating the health services it provides. Therefore, as part of their activity, they have published a balanced scorecard report in November 2013. The report assesses the health services’ performance, for the first two quarters of 2013.
To see the entire scorecard, access: Sunrise Health Region Balanced Scorecard 2013-14.
Competition, along with the need of being the best at something are key concepts that drive companies forward. The same principle applies when it comes to educational institutions. In this market, providing quality service is a key factor in establishing a hierarchy.
In this regard, institutes of higher education have set their focus on how to improve the quality of education. The Balanced Scorecard (BSC) is an useful tool for measuring and managing the academic values that can be quantifiable. Listed below are some examples of Key Performance Indicators that can be used by academic institutions: (more…)
The rapid expansion of the healthcare industry has led to important developments in the domain. One of the fastest growing specialties in the field has been hospital medicine, born out of the requirement to improve efficiency and quality of clinical care in hospitals. The success and growth of this particular field is based on its primary focus: delivering safe and high value clinical care. (more…)
The starting point of a communication planning should be the consideration of a vision and objectives. We must ask ourselves why are we launching a communication plan and what do we expect to achieve as a result. Would it be a primary focus on educating our key stakeholder groups or in winning the support of front-line employees?
At Nova Scotia Power, a Canadian electrical utility, the Balanced Scorecard team used this vision to guide their communication efforts: “To present the concepts of the Balanced Scorecard (BSC) to the key constituents involved in both sponsoring and providing input to the implementation, and to provide all involved with regular updates regarding the team’s progress during the implementation.” This simple statement provided the basis for all future communication efforts during the rollout.
How do you measure your library’s success? Is it circulation numbers? Or the number of searches on your electronic databases? In a recent customer survey, EBSCO Publishing found that over 60% of its customers had no formal way of quantifiably tracking organizational success and that over 50% of public and academic libraries used informal customer feedback as their primary metric of success.
“If you cannot measure it, you cannot improve it.” (Lord Kelvin)
The Balanced Scorecard, or BSC, is a strategy performance management tool that helps managers to put in balance four main perspectives (the customer’s perspective, the company’s internal perspective, as well as innovation and improvement). Also, it encourages them to focus on complex cause and effect relationships and on developing a systemic aligned strategy. Basically, through this semi-standard structured report, supported by design methods and automation tools, managers can keep track of the employees’ performance and monitor the consequences of their actions.
Who sustains this? The Emirates National Oil Company (ENOC), a wholly-owned company of the Government of Dubai, which develops downstream and upstream activities in the oil and gas sector.
Saeed Khoory, Chief Executive Officer at ENOC, asserts that “ENOC’s name will become synonymous with industry best practices across multiple industries and markets.” How is this going to happen? Through the right performance management approach.
Since the application of the Balanced Scorecard (BSC), in 2010, as the vital driver of ENOC’s Strategy Execution and Performance Management program, the organization has seen its overall performance enhanced. Having a BSC approach has brought tangible improvements to the organization, serving as a gold standard against which to benchmark its long-term growth goals for business diversification, customer satisfaction, employee engagement, product and service delivery and corporate social responsibility.
When Kaplan and Norton’s second book, The Strategy Focused Organization was published, the Harvard Business Review hailed the Balanced Scorecard (BSC) as one of the most significant contributions to management practice in the last 75 years. However, despite its well-publicized successes, many organizations that adopt a scorecard still fail to achieve the rewards they expect.
Why using Strategy Maps alongside Balanced Scorecard? If your balanced scorecard does not use a strategy map, then your scorecard will remain an operational tool, rather than one of strategy communication and execution. A strategy map sits in front of its balanced scorecard. It is very important to understand that each balanced scorecard has a strategy map. Rather than, each strategy map has a scorecard behind it.