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Balanced Scorecard Two Perspectives
By Shih-Jen Kathy Ho and Ruth B. McKay
In Brief
Two Organizations Share their Experiences
Balanced scorecard (BSC) is a performance measurement and strategic management system that translates an organization’s mission and strategy into a balanced set of integrated performance measures. The performance measures provide a concise yet complete picture of an organization’s progress toward its mission and goal. Organizations that have adopted BSC report varying degrees of success with its use as a motivational tool and form of performance feedback.
This article examines two case studies. At an automobile manufacturer, BSC successfully integrated organizational goals into the daily activities of the employees. In the second case, a bank replaced BSC with an alternative measuring approach because the bank found BSC inappropriate for the organizational culture it wanted to create. The authors compare the two organizations’ applications of BSC in order to better understand why the organizations experienced such different results and levels of satisfaction.
Balanced scorecard (BSC) is a strategic measurement and management system that translates an organization’s mission and strategy into a balanced set of integrated performance measures. BSC’s strength lies in its use of both financial and nonfinancial measures in encouraging and rewarding employees in achieving an organization’s long-term goals. The creators of the BSC, Robert Kaplan and David Norton, argue that in the information age, organizations require new capabilities for competitive success, such as customer relationships, product innovation, customized products, employee skills, moti ...