Many companies have adopted balanced scorecard which helps in building better business processes. The balanced scorecard is a strategic planning and management system that is used extensively in business and industry, government, and nonprofit organizations worldwide to align business activities to the vision and strategy of the organization, improve internal and external communications, and monitor organization performance against strategic goals.

Kaplan and Norton describe the innovation of the balanced scorecard as follows:

"The balanced scorecard retains traditional financial measures. But financial measures tell the story of past events, an adequate story for industrial age companies for which investments in long-term capabilities and customer relationships were not critical for success. These financial measures are inadequate, however, for guiding and evaluating the journey that information age companies must make to create future value through investment in customers, suppliers, employees, processes, technology, and innovation."

Kaplan and Norton recommend a nine-step process for creating and implementing the balanced scorecard in an organization.

1. Perform an overall organizational assessment.

2. Identify strategic themes.

3. Define perspectives and strategic objectives.

4. Develop a strategy map.

5. Drive performance metrics.

6. Refine and prioritize strategic initiatives.

7. Automate and communicate.

8. Implement the balanced scorecard throughout the organization.

9. Collect data, evaluate, and revise.

I wish above information will help you with the concept of Balanced Scorecard and will definitely push you towards balanced scorecard adoption in your organization.

By Priti Shah

Laurent & Benon Management Consultants Ltd, a public limited company with its corporate office Gurgaon with Pan-India presence. We as an organization strive to offer the right Human Resource Solutions at the right time and enable our clients to enhance the net worth of their human resource capital.