The Balanced Scorecard method of Kaplan and Norton is a strategic approach and performance management system that organizations use to translate vision and strategy into practice, working from four critical success factors:
A recent survey of 150 large North American organizations shows the adoption rate of the Balanced Scorecard system is nearly 50% in manufacturing and governmental organizations, and 30-40% in retail and service organizations. (Source: Robert S. Kaplan and David P. Nortan, The Strategy-Focused Organization, Harvard Business School Press, Boston, 2001).
White paper: Designing and Deploying Microsoft Office Solution Accelerator for Business Scorecards uses Business Scorecard Manager 2005 to show how to plan for rolling out a business scorecard solution. For example, organizations need to link performance measurement to strategy, and measure performance in ways that both promote positive future results and reflect past performance. PerformancePoint Server 2007 improves upon the features in Microsoft Office Scorecard Manager 2005 to continue helping companies incorporate the Kaplan and Norton Balanced Scorecard method.
There are several ways that companies have implemented PerformancePoint Server to measure performance.
The article, Microsoft Balanced Scorecard Accelerator for Government, demonstrates a measurement system for government agencies.
Last week I attended a TechReady 2009 session that extends a solution accelerator available on the Microsoft BI site. The accelerators are samples or solutions that typically provide a white paper and downloadable code. The IT Solution Accelerator demonstrates how to use PerformancePoint Server to monitor and analyze the health of your IT infrastructure by connecting to System Center Operations Manager 2007, SCOM (formerly known as Microsoft Operations Manager, MOM) data.
What is performance management?
The Role of Performance Management in Organizations
How do I build a scorecard?
In my last post, What is the Balanced Scorecard method? , I briefly describe Kaplan and Norton's Balanced
You say in a recent study, but that study is 10years old.
Great post. This is really informative and could really help those who need more details on how a balanced scorecard really works! Hope to read more from you soon!
To me it seems that Performance Point does not address the linked aspect of "Initiatives" in the Balance Scorecard Methodology. I would be curious to hear if anyone has seen this addressed.