"It gets worse if you think of the scorecard as a new measurement system that eventually requires hundreds and thousands of measurements and a big, expensive executive information system. These companies lose sight of the essence of the scorecard: its focus, its simplicity, and its vision. The real benefit comes from making the scorecard the cornerstone of the way you run the business. It should be the core of the management system, not the measurement system. [It should become] the lever to streamline and focus strategy that can lead to breakthrough performance." (Larry Brady, [interview] 1993)
"Investors should remember that their scorecard is not computed using Olympic-diving methods: Degree-of-difficulty doesn't count. If you are right about a business whose value is largely dependent on a single key factor that is both easy to understand and enduring, the payoff is the same as if you had correctly analyzed an investment alternative characterized by many constantly shifting and complex variables." (Warren Buffett, "Chairman's Letter - 1994", 1995)
"The Balanced Scorecard has its greatest impact when it is deployed to drive organizational change. [...] The Balanced Scorecard is primarily a mechanism for strategy implementation, not for strategy formulation. It can accommodate either approach for formulating business unit strategy-starting from the customer perspective, or starting from excellent internal-business-process capabilities. For whatever approach that SBU senior executives use to formulate their strategy, the Balanced Scorecard will provide an invaluable mechanism for translating that strategy into specific objectives, measures, and targets, and monitoring the implementation of that strategy during subsequent periods." (Robert S Kaplan & David P Norton, "The Balanced Scorecard", Harvard Business Review, 1996)
"The Balanced Scorecard translates mission and strategy into objectives and measures, organized into four different perspectives: financial, customer, internal business process, and learning and growth. The scorecard provides a framework, a language, to communicate mission and strategy; it uses measurement to inform employees about the drivers of current and future success." (Robert S Kaplan & David P Norton, "The Balanced Scorecard", Harvard Business Review, 1996)
"Today, organizations are competing in complex environments so that an accurate understanding of their goals and the methods for attaining those goals is vital. The Balanced Scorecard translates an organization's mission and strategy into a comprehensive set of performance measures that provides the framework for a strategic measurement and management system." (Robert S Kaplan & David P Norton, "The Balanced Scorecard", Harvard Business Review, 1996)
"The balanced scorecard measures your company’s performance from four perspectives - financial, customer, internal processes, and learning and growth. A strategy map is a visual framework for the corporate objectives within those four areas." (Robert S Kaplan & David P Norton, "Having Trouble with Your Strategy? Then Map It", Harvard Business Review, 2000)
"Balanced Scorecard theory is flawed because it presents managers with a scorecard which gives no score – that is no single-valued measure how they have performed. Thus managers evaluated with such a system […] have no way to make principled or purposeful decisions." (Michael Jensen, “Value Maximization, Stakeholder Theory, and the Corporate Objective Function”, Journal of Applied Corporate Finance, 2001)
"Dashboards and visualization are cognitive tools that improve your 'span of control' over a lot of business data. These tools help people visually identify trends, patterns and anomalies, reason about what they see and help guide them toward effective decisions. As such, these tools need to leverage people's visual capabilities. With the prevalence of scorecards, dashboards and other visualization tools now widely available for business users to review their data, the issue of visual information design is more important than ever." (Richard Brath & Michael Peters, "Dashboard Design: Why Design is Important," DM Direct, 2004)
"So, what is the Balanced Scorecard? In short, it’s a management system that enables your organization to set, track and achieve its key business strategies and objectives. Once the business strategies are developed, they are deployed and tracked through what we call the Four Legs of the Balanced Scorecard. These four legs are made up of four distinct business perspectives: The Customer Leg, the Financial Leg, the Internal Business Process Leg, and the Knowledge, Education, and Growth Leg." (Chuck Hannabarger et al, "Balanced Scorecard Strategy For Dummies", 2007)
"Following a total balanced-scorecard approach gives your business the balance needed to ensure that these critical areas get the attention they deserve. Organizational balance isn’t all that difficult to understand, but achieving it... well, that’s a different story. [...] Balance takes effort and persistence and can be achieved in any business, in any country, at any time. The old saying “It won’t work in this place - we’re different from all those other guys out there” just doesn’t wash. If you think that way, your competition will thank you - all the way to the bank!" (Chuck Hannabarger et al, "Balanced Scorecard Strategy For Dummies", 2007)
"[…] a KPI is a metric, but a metric is not necessarily a KPI. A metric is really a measure of anything. A KPI, however, is meant to be a measure “ that matters ”and that ideally can be acted on. An organization has many metrics, but typically just a few KPIs. This is often the challenge when a management team meets to agree on a short list of key measures for use in its proposed dashboards and scorecards." (Nils H Rasmussen et al, "Business Dashboards: A visual catalog for design and deployment", 2009)
"Although performance measurement is often linked to tools such as scorecards, dashboards, performance targets, indicators and information systems, it would be naïve to consider the measurement of performance as just a technical issue. Indeed, measurement is often used as a way of attempting to bring clarity to complex and confusing situations." (Dina Gray et al, "Measurement Madness: Recognizing and avoiding the pitfalls of performance measurement", 2015)
"The traditional balanced-scorecard (BSC) approach uses performance measures to monitor the implementation of the strategic initiatives, and measures are typically cascaded down from a top-level organizational measure such as return on capital employed. This cascading of measures from one another will often lead to chaos, with hundreds of measures being monitored by staff in some form of BSC reporting application." (David Parmenter, "Key Performance Indicators: Developing, implementing, and using winning KPIs" 3rd Ed., 2015)
"The bad news is that companies tend to focus on three out of the four elements of the balanced scorecard and emphasis is skewed away from the customer component, which is the least understood and believed by many to be the least quantifiable." (Alan Pennington, "The Customer Experience Book", 2016)
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