The promise and perils of the balanced scorecard

  • Gary Cokins
  • Journal of Corporate Accounting & Finance, March 2010, Wiley
  • DOI: 10.1002/jcaf.20576

Description of a strategy map and its associated Balanced Scorecard with KPIs.

What is it about?

There is lack of consensus as to what a balanced scorecard is. To complicate matters many organizations initially start with developing a balanced scorecard without first developing its companion and arguably more important strategy map from which the balanced scorecard’s key performance indicators (KPIs) should be derived. Further complicating matters is organizations confuse strategic KPIs that belong in a scorecard from operational performance indicators (PIs) that belong in a dashboard.

Why is it important?

Most organizations implement enterprise and corporate performance management (EPM/CPM) methods, including the Balanced Scorecard, in isolation of each other. There is synergy when an organization seamlessly integrates them, and even more power when one imbeds business analytics of all flavors (e.g., regression, correlation analysis) into each method.


Mr Gary Cokins
Analytics-Based Performance Management LLC

Many organizations use practices from the 1960s. They need to get into the 21st century using progressive EPM/CPM methods. These methods can be easily implemented in weeks, not months, using a rapid prototyping with iterative remodeling approach which is a consulting offering I provide. Crawl, walk, run, and fly. Start with the “crawl” to accelerate learning and buy-in.

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The following have contributed to this page: Mr Gary Cokins