Balanced Scorecard basics - what it is? How and why organisations use it?
If you are looking for brief verbal explanations, go to the section on Frequently Asked Questions (FAQs) where you will find two FAQs:
For an introductory slide presentation, have a look at:
For a more comprehensive introduction, read these:
- “Why do only one third of UK companies realise significant strategic success?”. This paper explores some of the reasons why organisations fail to achieve their strategic goals and may help you build a good case for change in your organisation.
- Improving public sector governance through better strategic management
- Balanced Scorecard Implementation in SME’s
If you have additional questions on the Balanced Scorecard try these:
- Where can I find out more about Balanced Scorecard? This 2GC FAQ introduces some of the most useful books and articles on the subject.
- To search more widely, consult the 2GC Weblinks Database. This is a collection of more than 150 web sites which have content relating Balanced Scorecard and corporate performance management. All sites are rated regularly with regards to content, functionality and “look & feel”.
Balanced Scorecard - Design Hints
If you are looking for brief verbal explanations of Balanced Scorecard design, go to the section for Frequently Asked Questions (FAQs) where you will find:
- What are the main benefits of a Balanced Scorecard? This FAQ explains the importance of clarifying the benefits you hope to achieve from implementing the Balanced Scorecard and how this should influence the Balanced Scorecard design approach you chose
- How can I maximise the chances of successfully implementing Balanced Scorecard? This highlights some of the typical Balanced Scorecard design and implementation issues of which you should be aware.
- An introduction to why quick solutions to Balanced Scorecard design are often a waste of time: Can I use measures from other organisations to build my own Balanced Scorecard?
- For more advanced guidance on Balanced Scorecard design, these two FAQs describe Balanced Scorecard design for different purposes: How do I create a Balanced Scorecard for controlling strategy? and How do I create a Balanced Scorecard for Operational Managers?
For a more comprehensive explanation of Balanced Scorecard design, read these Case Studies and papers:
- Case Study: Implementing the Balanced Scorecard - lessons and insights from a multi-divisional oil company
- Case Study: Strategic Alignment: cascading the Balanced Scorecard in a multi-national FMCG company
- Case Study: Balanced Scorecard Renewal at UK Agency is an excellent illustration of some of the key differences between 2nd and 3rd Generation Balanced Scorecard design. It may also offer hope to those whose Balanced Scorecard implementation is not working as intended.
- Case Study: Implementing the Balanced Scorecard - lessons and insights from a financial services firm: Arran Ltd. This is more a study in how not to implement Balanced Scorecard and the lessons learned by Arran Ltd. It has the potential to save others lots of frustration and wasted resource
To find out more about how 2GC can help you design and implement effective Balanced Scorecards have a look at the Services section
How to align other management tools with Balanced Scorecard
If you are looking for brief verbal explanations, go to the section for Frequently Asked Questions (FAQs) where you will find:
- Can Balanced Scorecard be linked to other management processes?- a useful place to start
For a more comprehensive discussion and theoretic underpinning, read these papers:
- Enabling Quality Management. The paper looks at TQM, Business Excellence Models (EFQM, Malcolm Baldrige), ISO and Six Sigma and discusses how 3rd Generation Balanced Scorecard can provide the strategic control process required for such tools to work effectively.
- The BSC vs. EFQM Business Excellence Model - which is the better strategic management tool?
- Combining EVA with the Balanced Scorecard to improve strategic focus and alignment.
- How can HR and other staff functions benefit from 3rd Generation Balanced Scorecard? HR Balanced Scorecard has developed into a concept in its own right, but is this necessary and how do HR and other support function Balanced Scorecards differ from line management Balanced Scorecards?
- How do I link Corporate and Individual Performance Management Systems? Although a compelling proposition doing this is not as straightforward as it may seem.
For slide presentations look at these:
- EVA and the Balanced Scorecard, based on the paper mentioned above
- Service Level Agreements and the Balanced Scorecard
Balanced Scorecard - Advanced Topics
2GC is a noted creator of original research papers that look at aspects of Balanced Scorecard application to the modern organisation. We recommend you visit the 2GC Papers section of this web site to review the wide range of advanced topics covered. In particular, we draw your attention to the following:
- “Improving public sector governance through better strategic management” and “Balanced Scorecard Implementation in SME’s” offer examples of 3rd Generation Balanced Scorecard design in particular sectors and also analyse the theoretical underpinnings of Balanced Scorecard application in these environments
- “The Balanced Scorecard as a Communication Protocol in Organisations” . The paper describes effective Balanced Scorecard design and also discusses how 3rd Generation Balanced Scorecard is used to communicate operations’ strategy across intra-organisational borders.
Most of the papers in the 2GC Papers section have also been published in academic journals, and even though they have been adapted for web site publication, they can still be heavy reading. So if you are looking for some simpler introductions to advanced Balanced Scorecard topics, go to the section for Frequently Asked Questions (FAQs) where you will find:
- Can I apply Balanced Scorecard in my not-for-profit/public sector organisation?
- Can I apply Balanced Scorecard to my small business?
- How do I create a Balanced Scorecard for controlling strategy?
- How do I create a Balanced Scorecard for Operational Managers?
For suggested books and articles on Balanced Scorecard written by others, you should read this FAQ: Where can I find out more about Balanced Scorecard? Or simply visit our Readings section and / or check out the Weblinks Database
2GC regularly adds to the advanced materials on Balanced Scorecard held on this site. The best way of keeping up to date with latest developments is to sign up for the 2GC Email Update service.
