The Balanced Scorecard

Robert S. Kaplan, Author, David P. Norton, Joint Author, David P. Norton, Preface by
Robert S. Kaplan, Author, David P. Norton, Joint Author, David P. Norton, Preface by Harvard Business School Press $39.95 (322p) ISBN 978-0-87584-651-4
Reviewed on: 09/02/1996
Release date: 09/01/1996
Paperback - 64 pages - 978-1-4221-3653-9
Open Ebook - 978-1-322-35149-0
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As running a corporate--or government or not-for-profit--enterprise becomes increasingly complicated, more sophisticated approaches are needed to implement strategy and measure performance. Purely financial evaluations of performance, for example, no longer suffice in a world where intangible assets--relationships and capabilities--increasingly determine the prospects for success. Kaplan, a Harvard Business School professor of accounting, and Norton, president of Renaissance Solutions, make a key contribution by describing and illustrating the balanced scorecard, a multidimensional approach to measuring corporate performance that incorporates both financial and non-financial factors. The concept of a balanced scorecard originated in a study group of 12 companies that met throughout 1990; since then, the authors have worked with several companies, including FMC Corporation, Brown & Root Energy Services, Mobil and CIGNA, to create scorecards and use them as a systematic means to implement new organizational strategy. Though still in the preliminary stages of development, balanced scorecards could represent the emergence of a new era of management sophistication, in which both the hard and soft variables of work life are taken into account in a rigorous, testable fashion. Kaplan and Norton provide an excellent, though dry, introduction to a new methodology of management. (Sept.)