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Related Experiment Videos

The balanced scorecard--measures that drive performance.

R S Kaplan1, D P Norton

  • 1Harvard Business School.

Harvard Business Review
|December 10, 1991
PubMed
Summary
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Managers need a balanced scorecard to view business performance comprehensively. This system integrates financial metrics with operational measures for customer satisfaction, internal processes, and organizational learning, driving future financial success.

Area of Science:

  • Business Management
  • Performance Measurement Systems

Background:

  • Traditional financial performance measures are often inadequate.
  • Managers seek a balanced view integrating financial and operational metrics.

Purpose of the Study:

  • To develop a new performance measurement system, the balanced scorecard.
  • To provide top managers with a comprehensive business overview.

Main Methods:

  • Conducted a year-long research project with 12 leading companies.
  • Developed the balanced scorecard framework integrating financial and operational measures.

Main Results:

  • The balanced scorecard includes financial measures and operational measures for customer satisfaction, internal processes, and learning/improvement.

Related Experiment Videos

  • Companies can translate strategy into specific goals and measures using the balanced scorecard.

    • Conclusions:

    • The balanced scorecard offers a superior approach to performance measurement.
    • It enables a simultaneous, multi-perspective view of the business, linking current results to future drivers.