What Is The Balanced Scorecard?

HBS professor Robert S. Kaplan, along with his colleague Dr. David Norton, created the balanced scorecard to help executives translate their corporate mission and strategy into tangible objectives and performance measures. The balanced scorecard integrates four key perspectives—financial, customer, process, and organizational learning—into a single performance measurement and management report. Organizations use the balanced scorecard to communicate strategy to all employees, provide guidance for their local decision-making and problem-solving, and give feedback on performance that keeps companies looking forward and moving ahead. "Its true power," notes Professor Kaplan, "is to help employees align their day-to-day activities to their organization's strategic objectives, and to adapt and change in the face of uncertain, volatile external conditions."