Please forward this error screen to 193. Balanced Scorecard elements to inform personal goal setting and incentive kaplan step 3 books pdf. Balanced scorecard is an example of a closed-loop controller or cybernetic control applied to the management of the implementation of a strategy.
Closed-loop or cybernetic control is where actual performance is measured, the measured value is compared to a reference value and based on the difference between the two corrective interventions are made as required. Balanced Scorecard was initially proposed as a general purpose performance management system. Subsequently, it was promoted specifically as an approach to strategic performance management. Balanced scorecard has more recently become a key component of structured approaches corporate strategic management.
Organizations have used systems consisting of a mix of financial and non-financial measures to track progress for quite some time. Schneiderman’s design was similar to what is now recognised as a “First Generation” Balanced Scorecard design. In 1990 Art Schneiderman participated in an unrelated research study led by Robert S. Kaplan in conjunction with US management consultancy Nolan-Norton, and during this study described his work on performance measurement.
Subsequently, Kaplan and David P. Norton included anonymous details of this balanced scorecard design in a 1992 article.
Kaplan and Norton’s article wasn’t the only paper on the topic published in early 1992 but the 1992 Kaplan and Norton paper was a popular success, and was quickly followed by a second in 1993. In 1996, the two authors published a book The Balanced Scorecard.
These articles and the first book spread knowledge of the concept of balanced scorecard widely, and has led to Kaplan and Norton being seen as the creators of the concept. While the “corporate scorecard” terminology was coined by Art Schneiderman, the roots of performance management as an activity run deep in management literature and practice. 19th Century in the USA. The tool also draws strongly on the ideas of the ‘resource based view of the firm’ proposed by Edith Penrose.
Kaplan and Norton’s first book remains their most popular. Strategic Linkage Model” or strategy map. As the title of Kaplan and Norton’s second book highlights, even by 2000 the focus of attention among thought-leaders was moving from the design of Balanced Scorecards themselves, towards the use of Balanced Scorecard as a focal point within a more comprehensive strategic management system. The characteristics of the balanced scorecard and its derivatives is the presentation of a mixture of financial and non-financial measures each compared to a ‘target’ value within a single concise report.