Balanced Scorecards

State University – The Higher School of EconomicsState University – The Higher School of Economics

The Department of The Department of Public AdministrationPublic Administration

Presentation

«The Balanced Scorecard: a Performance Management System»

Prepared by Ignatenko Anna

PlanPlan

• Traditional measurement suffers from grave shortcomings

• The origin of the Balanced Scorecard

• The Balanced Scorecard: measures that drive Performance

• The Balanced Scorecards as a Strategic Management System

• Practices & Examples of the Balanced Scorecard in public Management

SourcesSources

• Kaplan R.S., Norton D.P. The Balanced Scorecard – measures that drive performance. Harvard Business Review, 1992

• Kaplan R.S., Norton D.P. Using the Balanced Scorecard as a Strategic Management System. Harvard Business Review, 2007

• Kaplan R.S., Norton D.P. The Balanced Scorecard: translating strategy into action. Harvard Business Press, 2000 (books.google.ru)

• Черников А. Balanced Scorecard без секретов: (http://www.iteam.ru/publications/strategy/section_27/article_1482)

• Коробков А. The Balanced Scorecard – новые возможности для эффективного управления: (http://www.cfin.ru/management/bsc.shtml)

Why do organizations need the Balanced Why do organizations need the Balanced Scorecard?Scorecard?

• Traditional financial accounting measures:

Return on investment, earnings per share

Misleading signals for continuous improvement & innovation

• Work well for the industrial era, are out of step in Information Age

• Operational or financial measures?

The origin of the Balanced The origin of the Balanced ScorecardScorecard

In 1990 David Norton & Robert Kaplan started their

research “Measuring Performance in the Organization

of the Future” at the Norlan Norton Institute (KPMG

Peat Marwick)

Balanced Scorecard: imaging Balanced Scorecard: imaging entering the airplane cockpit …entering the airplane cockpit …

Balanced Scorecard is a set of measures

that gives top managers a fast but comprehensive view of the organization from four major perspectives:

1. Financial,

2. Customers,

3. Innovation & learning,

4. Internal business processes.

BSC complements the financial measures with operational ones, that are drivers of future financial performance

Key elements of the Balanced ScorecardKey elements of the Balanced Scorecard

The Balanced Scorecard as the The Balanced Scorecard as the management strategymanagement strategy

Thank you for your attention!

I’ll be glad to answer your questions!