The balanced scorecard is a performance management framework that became popular during the early 1990s. This paper describes changes to the definition of the framework that have occurred since then, recognising within these changes three distinct generations of balanced scorecard design. The paper relates these developments to literature concerning strategic management within organisations, observing that the changes made have improved the utility of the balanced scorecard as a strategic management tool. The paper concludes that the changes illustrate the importance of ideas of information symmetry in the understanding of strategic control processes within organisations. Suggestions of topics for further research are also made.

Quality initiatives in the West have produced limited long‐term success compared with equivalent initiatives in Japan. Some claim that this is due to the absence of explicit links between strategy and operational initiatives. The paper aims to tests this claim and suggests an approach that better supports quality management initiatives. The paper is based on a combination of literature review and case studies. It supports the assumption that an explicit link between strategy and operational initiatives is a critical success factor in deriving long‐term benefits from quality initiatives. It is an equally important feature of best practice performance management system design and the paper finds that quality management initiatives can be implemented more successfully, when associated with a robust corporate performance management approach based on modern strategic control principles. The paper demonstrates how the latest evolution of balanced scorecard – third‐generation balanced scorecard – adheres to such control principles and illustrates how it supports effective application of a number of popular quality management tools. The limited success of quality initiatives, along with the continued popularity of some of these tools, suggests that any approach, which effectively helps decrease the risk of failure, would carry significant value.

This paper is a case study exploring the design of a new corporate performance management (CPM) system for a UK government agency. The UK Environment Agency employs 11,000 staff in more than 40 discrete management units (comprising hierarchical, geographic and functional divisions). It is pursuing a strongly devolved approach to the development of strategic and operational plans. This paper describes work done by the agency to introduce a novel corporate management system based on best practice third-generation balanced scorecard processes. The case describes how this system was deployed at the corporate level and then within directorate, regional and area level units. The work in total involved the design and implementation of 44 balanced scorecards across the organisation. Within this framework, the new CPM system was positioned as the key mechanism of control for the entire organisation. The CPM is, however, taking different forms across the organisation, reflecting the differences in balance between management and strategic control priorities faced by different management groups. This paper explores the reasons the agency undertook the redesign of the CPM system, and looks at the design approach used to develop a system of control compatible with the needs of the organisation's devolved business units. The paper reports that the experience to date has been positive, and concludes with recommendations on future areas of research and ways to approach the issue of measure selection and use within complex devolved organisations.

Title: Multi-level strategic alignment within a complex organization Purpose: This paper assesses the utility of an approach to the design of multiple Balanced Scorecards within large / complex organisations, considers the relevance of 'emergent strategizing' in this kind of strategy implementation, and explores the project organisation and wider coordination issues that impact this type of work. Design/methodology/approach: A "Research Orientated-Action Research" research approach has been adopted, comprising qualitative observations of an ongoing programme within a major organisation in the Middle East. The case is based on feedback obtained from key actors (participants, facilitators) and the analysis of documentation produced by the project. Research limitations: The project relates to a continuing programme within the client organisation that was not explicitly established before it started as an action-research activity. This has limited and constrained the quality of the information reported. Findings: Over four years the project engaged directly with over 200 managers from the organisation's 35 most senior management units. Its purpose was to align the strategic aims of each unit with those of the organisation and introduce a new form of strategic control. The paper shows that consensus forming and the creation of locally relevant strategic agendas can be usefully and successfully embedded in a large scale strategic control and alignment programme. The paper notes the large resource implications and duration of such programmes, and the challenges of integrating the resulting processes with those already in place. The paper concludes that for the case organisation the resource investment appears to have generated useful outcomes. Originality/value: The scale of the project, the use of design methods that emphasis consensus forming and local relevance provide novel information and insights.

This paper describes a project to design and implement a strategic performance management system within Zamil Air Conditioners (ZAC). In 2001 ZAC had developed its first ever strategic plan using traditional rationalist methods, but with little effect. In 2002, they began a project to introduce a system to help it manage the implementation of its strategy based on an advanced version of the balanced scorecard framework referred to as third‐generation balanced scorecard. This paper describes this project and offers some insights into the application of strategic performance management methods and systems derived from this and prior experiences. This paper examines closely the methodologies employed in the formulation and implementation of strategy and begins by reviewing the literature surrounding the variety of methodologies observed by management authors. The paper then uses this literature to examine the ZAC operating practices prior to the new strategic management system, the choices made during the design process and how the new system changed the organisation. The paper concludes by offering some insights and recommendations about the design process and the physical outputs relating to the balanced scorecard and demonstrating in a practical situation why third‐generation balanced scorecard offers enhanced utility and practicality over previous designs. These benefits and recommendations are drawn from the viewpoints of both the consultants who facilitated the design process and the management team who developed the content of the management system. Although the design process for third‐generation balanced scorecard has been used numerous times in practice, this is the first case study on the specific assessment of the new process.