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.
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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.
Perspectives
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.
Mr Gary Cokins
Analytics-Based Performance Management LLC
Read the Original
This page is a summary of: The promise and perils of the balanced scorecard, Journal of Corporate Accounting & Finance, February 2010, Wiley,
DOI: 10.1002/jcaf.20576.
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