The Balanced Scorecard: A New Approach to

Implementing Strategy
A new approach to implementing strategy has emerged. The Balanced Scorecard, developed by Harvard Business
School professor, Robert Kaplan, and management consultant, David Norton, was first introduced in a 1992
Harvard Business Review article.5 The idea has spread rapidly. A recent survey conducted by Bain & Company
indicates that approximately 50% of companies now use “Balanced Scorecards” to help manage their
organizations.6The Balanced Scorecard (BSC) is a technique to translate an organization’s strategy into terms that
can be understood, communicated, and acted upon. A BSC uses the language of measurement to more clearly define
the meaning of strategic concepts like quality, customer satisfaction, and growth. Once a scorecard that accurately
describes the strategy has been developed, it then serves as the organizing framework for the management system.
As summarized in Figure 1, such a scorecard puts strategy at the center of the management process. In effect, the
Balanced Scorecard becomes the “operating system” for a new Strategic Management Process.

Balanced Scorecard
The balanced scorecard is a new management concept which helps managers at all levels monitor results
in their key areas. An article by Robert Kaplan and David Norton entitled "The Balanced Scorecard -
Measures that Drive Performance" in the Harvard Business Review in 1992 sparked interest in the
method, and led to their business bestseller, "The Balanced Scorecard: Translating Strategy into Action",
published in 1996.There's nothing new about using key measurements to take the pulse of an
organization. What's new is that Kaplan and Norton have recommended broadening the scope of the
measures to include four areas:

 financial performance,
 customer knowledge,
 internal business processes,
 learning and growth.

Measuring the Effectiveness of Human

Resources through the HR scorecards
Executives, directors, middle managers, and team leaders involved in or affected by the need to
achieve organizational success, as well as those who decide and implement organizational
change. It is suitable for those with organizational re-engineering experience as well as for new
practitioners.The course will be of benefit to all those who have responsibility for the ‘output’ of
others including, superintendents, senior managers, HR Managers, Current and Future Managers
as well as Current and Future Supervisors.This course will provide participants with a sound
foundation for implementing the Balanced Scorecard approach to convert organizational strategy
into performance achievements.It will examine the intricate relationship between the
organization’s vision and strategy and the linking elements of customers, financial
arrangements, internal business processes and the organization’s ability to innovate, learn and
develop in its mission to exceed customers’ expectations.

Balance Score Card for transaction processing and knowledge managing

organization
 The organization started its journey in the ePayment sector in 1997 and since then has been instrumental
in shaping the way India today transacts electronically. The company has devoted its founding years in
building a massive and largely scalable infrastructure for enabling electronic payments in the country.
The company not only enjoys a tremendous first mover's advantage, but also has in place a superior
infrastructure backed by a very professional and experienced management team, which has worked in the
Indian eTransaction business for more than a decade. Having achieved leadership in the Indian market,
Venture Infotek has begun to spread its wings into the overseas market with its clientele now in the Sri
Lankan and Middle East market. Leveraging on its intellectual property Venture Infotek has served as a
catalyst in the payment card industry and is now focused on upstream integration into business
consulting.

2. Assess your organizations current performance system.

Performance management system is introduced to know the gap between actual and expected. It
helps the organization to understand the quality of their human resources, to set development plan
and link pay to performance. PMS as a system has two way linkage, from an employee point of
view it helps the employee know as to what is expected from him, how he/she is doing and what
is the development plan. From an organizational point of view, it first sets clear cut accountability
and responsibility with respect to the work and also helps during salary increase. There cannot be
any one reason in isolation and hence even in Venture, we have a formal performance
management process in place which helps us to keep our employees aware of where they stand on
performance grounds vis-à-vis expectation of the company, it also helps to set clear objectives
and targets so that each employee is aware what is expected out of him and if any developmental
inputs by way of training etc is required. A set PMS system helps to justify linkage of pay to
performance and raise the bar every year for the employee to perform better and better so that he
gets the maximum in terms of monetary benefits and higher responsibility.A well carried out
performance appraisal process also motivates the employees since through this process they know
how they are performing and what is it that the management expects out of them. Performance of
an individual can be measured on various parameters. We have pre-defined objectives i.e. Key
Result Areas which are set at the beginning of the year and so are the measurement criteria’s. It is
very difficult to generalize the aspect of measurement since it varies depending upon the
objective, function and level. Everyone in an organization cannot be measured on same
parameters. Measurements necessarily depends on the objective and hence can be time bound,
output related or input related etc.

Balance ScorecardTM Coach

You can become a Certified Personal Balanced Scorecard Coach by

attending the PBSC Coach Certification Program at your local Academy
for PBSC Coaching. Students are granted two certification; Life & Career Coaching and Executive
Coaching. PBSC Life & Career Coaching is related to personal effectiveness and growth in life. The
emphasis is on excelling in everything you do, making the right choices in developing your future, having
a happier and more fulfilling life and facing new life challenges. PBSC Executive Coaching focuses on
managers who would like to develop their personal leadership, improve employee performance, enhance
employee engagement, empower their employees, create trust and a real learning organization, increase
employee’s self-responsibility and work enjoyment, and ultimately, enhance sustainable organizational
effectiveness. The related PBSC coach training program “Personal Balance Scorecard (PBSC): Linking
Human Capital to Business Success” has been awarded continuing coaching education approval by the
International Coaching Federation (ICF) in the following continuing education categories:

The Balanced Score Card

Robert Kaplan, Harvard Business School professor and co-author of The Balanced Score Card, revealed
his value system in a remark to The Speaker. He was listening to another speaker at the time. That
speaker asked his audience: "What is your organization's most important asset?" Everyone volunteered
the same answer: "Our people." "No, no," said the speaker. "Every organization has at least some good
people. If good people are everywhere, they can't be a competitive advantage."The correct answer," the
speaker said, "is good measurements." Kaplan, who's spent his life as an academic and consultant
preaching the power of good metrics, nodded in agreement. A good metric, he said, is like the laser pen
he held up. It fits into the palm of your hand. You can take it with you wherever you go. Inside it is
photons, and the photons keep the beam in phase and coherent. That's what good measurements do for
you -- they keep you in phase and coherent. They do not break up over distances. They keep telling the
truth no matter how far out you go.Thus moving towards a BSC linked performance management system
would help to have clear objectives and measurement criteria’s to have clear understanding of
expectations from ones role.