Introducing the Balanced Scorecard: Creating Metrics to Measure Performance

Abstract

This experiential exercise presents the concept of the Balanced Scorecard (BSC) and applies it in a university setting. The Balanced Scorecard was developed 12 years ago and has grown in popularity and is used by more than 50% of the Fortune 500 companies as a performance measurement and strategic management tool. The BSC expands the traditional financial measures into three other dimensions to capture a balanced approach to measure performance in an organization. These additional dimensions are as follows: Customer Focus, Competence/Employee Learning and Growth, and Operational Efficiency. The exercise uses an analogy of a race car driver who relies on one aspect of measurement to gauge the race versus relying on multiple dimensions of performance.

Balanced Scorecard Implementation in a Local Government Authority: Issues and Challenges

“…The BSC has long been recognised as a performance measurement framework and a strategy implementation methodology (Reisinger, Cravens and Tell 2003; Tennant and Tanoren 2005) as evidenced by the fact that over 50% of the Fortune 500 companies are using this approach as a performance measurement and strategic management tool (Gumbus 2005). However, there is fairly broad consensus that there are significant challenges in transposing the BSC principles to public sector organisations, and that particular circumstances unique to the public sector give rise to the need for adjustments in both BSC design and implementation (Kaplan 2001; Niven 2002; Wisniewski and Stewart 2004; Adcroft and Willis 2005; Greatbanks and Tapp 2007).…”

Presenting an algorithm of integer nonlinear multiple objective programming in conditions of uncertainty for balanced scorecard method (case study in Islamic Azad University, Semnan Branch)

“…Changes that occurred on measurement during these years caused a move from traditional measurement to balanced measurement (Wilson, 2004;Gumbus, 2005). These Changes started when the results of researches in this area indicated that 70 percent of developed strategies at implementation stage have encountered failure.…”

Causality analysis of the technology strategy maps using the fuzzy cognitive strategy map

“…The balanced scorecard is a performance management system that enables businesses to drive strategies based on measurement and follow-up ( Figure 1). Since the early 1990s, the balanced scorecard has been applied in numerous large organizations resulting in many positive results that have been chronicled in the management literature (Gumbus, 2005;Koning, 2004;Neely, 2005). Marr and Schiuma (2003) claim that the BSC is "the most influential and dominant concept in the field of performance measurement research" (Marr and Schumia, 2003).…”