Magazine article Strategic Finance

A Guide to Implementing a Balanced Scorecard. (Books)

Magazine article Strategic Finance

A Guide to Implementing a Balanced Scorecard. (Books)

Article excerpt

* IN THIS UNCERTAIN ECONOMIC CLIMATE, MANY are starting to see that financial performance alone is insufficient for understanding all the aspects needed to make a true assessment of an organization's health. In the book, Balanced Scorecard Step-By-Step: Maximizing Performance and Maintaining Results, written by Paul Niven and published by John Wiley & Sons, the author asserts that an organization should be accountable to its constituents for its entire performance--not simply for its financial bottom line. According to Niven, the best tool to measure this performance is the balanced scorecard, which encompasses the entire spectrum of an organization's performance.

But how can one implement a balanced score-card when every company is unique? At the outset, Niven acknowledges that processes vary depending on the mission and culture of each organization. Therefore, a universal approach is neither suggested nor implied. Before implementing a balanced scorecard, systematic analysis of the organization is needed. If it's going to be effective and accurate, the balanced scorecard must be organization specific. Niven takes this complexity into account as he provides a solid step-by-step framework for implementation, supplementing it with plenty of suggestions for helping with the analysis needed to develop a value-added balanced scorecard.

While following the format of Kaplan and Norton's original balanced score-card, Niven focuses on implementation, using several real-world examples and suggestions developed from his years as a consultant. He discusses how the idea of the balanced scorecard begins in an organization, how to compose an implementation team, and more, taking the reader through the entire process.

One major strength of Niven's style is that there are plenty of suggestions and examples provided throughout, including help with one of the most difficult aspects--selecting appropriate performance measures for the four areas of the balanced scorecard: financial, customer, internal business process, and learning and growth. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.