Balanced Scorecard (BSC)
Strategy execution is the number one challenge that executives face. In tough times, staying the course becomes an even greater challenge. When business leaders face tough choicesâ€”reducing the workforce, scaling back initiatives, postponing capital investmentsâ€”how can they tighten the belt without undermining the strategy theyâ€™ve worked so hard to shape?
Far more than a performance measurement tool, the Balanced Scorecard (BSC) has evolved to become one of the most effective strategy execution frameworks ever. The Balanced Scorecard concept was created by Drs. Robert S. Kaplan and David P. Norton and their colleagues at Palladium Group. It is the philosophical underpinning of the Palladium Execution Premium Process™ (XPP). Besides helping organizations articulate strategy in actionable terms, the Balanced Scorecard provides a road map for strategy execution, for mobilizing and aligning executives and employees and making strategy a continual process.
The Balanced Scorecard is a multidimensional approach to measure performance that incorporates both financial and non-financial factors. It balances four performance perspectives—financial, customer, process, and learning and growth. With the Balanced Scorecard, organizations can easily see the cause-effect relationship between actions and outcomes, whether it’s the effect a new CRM program will have on financial performance or the impact a new process improvement will have on accelerating product development. No other management tool illustrates these interconnections with such clarity.
The Balanced Scorecard concept was selected by the editors of Harvard Business Review as one of the most influential management ideas of the past 75 years.
While the BSC remains at the core, the Kaplan-Norton approach to strategy management has grown into a comprehensive strategy management system that Palladium is uniquely qualified to provide its clients.
Contact us to speak with one of our experts about our Balanced Scorecard consulting offerings. Palladium can help you create a framework to describe and communicate your strategy in a consistent manner and create a view of your strategy that can be easily understood by everyone in your organization. We can help you define effective measures and targets and ensure they are clearly linked to the strategy and initiatives.
Whether you are just starting and making a case for change or have a well-established Balanced Scorecard implementation, our services are tailored to match your needs.