Balancescore Card

The Balance Scorecard:
Norreklit paper
The paper then examines whether the balanced scorecard can link strategy to operational metrics which managers can understand and influence. Finally, it discusses and suggests some improvements to the balanced scorecard.

It contains outcome measures and the performance drivers of outcomes, linked together in cause-and-effect relationships, and thus aims to be a feed-forward control system. Furthermore, the balanced scorecard is intended not only as a strategic measurement system but also as a strategic control system which can align departmental and personal goals to overall strategy.

Thus, the competitive strategy of a firm should be driven by its environment and not by its core competencies_   (Prahalad and Hamel, 1990, pp. 79]91.or resources _Collis and Montgomery, 1995, pp. 118]128., which, quite the contrary, should be adapted to the environment.

The scorecard translates the vision and strategy of a business unit into objectives and measures in four different areas: the financial, customer, internal-business-process and learning and growth perspectives. The financial perspective identifies how the company wishes to be viewed by its shareholders. The customer perspective determines how the company wishes to be viewed by its customers. The internal-business-process perspective describes the business processes at which the company has to be particularly adept in order to satisfy its shareholders and customers. The organizational learning and growth perspective involves the changes and improvements which the company needs to realize if it is to make its vision come true _Kaplan and Norton, 1996a, pp. 30]31

The balanced scorecard_Kaplan and Norton, another model which integrates financial and non-financial strategic measures. It is distinct from other strategic measurement systems in that it contains outcome measures and the perfor- mance drivers of outcomes, linked together in cause-and-effect...