Microsoft Balanced Scorecard Framework
Balanced Scorecard Analysis If you can’t measure it, you can’t manage it. This is the philosophy behind the balanced scorecard methodology, a performance management approach developed by Robert Kaplan and David Norton. Balanced scorecard methodology is at the heart of today’s successful businesses. The Problem Companies that use the balanced scorecard methodology get a more accurate, comprehensive view of their business performance. The balanced scorecard approach relies on the monitoring of critical business-strategy-oriented metrics, such as quality, customer satisfaction, innovation, and market share—measurements that can often reflect a company’s economic conditions and growth prospects better than its reported earnings. The balanced scorecard methodology is more than a set of metrics; it is a system of linked objectives, measurements, targets, and initiatives that collectively communicate and measure an organization’s business strategy. ... To deliver maximum value, a balanced scorecard solution must: ·Be built using guidance from experts in developing balanced, leading, and strategy-focused metrics and initiatives. ... ·Provide a way to automate the collection and summarization of all the data that is fed into the balanced scorecard solution.