|
Balanced Business Scorecard
The Balanced Business Scorecard (BBS) was developed in the early 90s as part of a large exercise undertaken by the Nolan Norton Institute (NNI), working along with Dr. Robert S Kaplan. NNI is the research institute of Nolan, Norton & Co., a Massachusetts-based specialist business & IT strategy firm of KPMG.
BBS is a strategic management tool to operationalize organizational vision and strategy. Over 60% of the Fortune 500 companies have already implemented the Balanced Scorecard in some form or the other. KPMG views BBS as much more than simply a performance measurement system. The BBS is a tool that aligns employees with an identified strategy using appropriate and balanced performance measures that will help the organization monitor and finally achieve that strategy. It represents a set of indicators that give senior management a "snapshot" of the health of the business.
Unlike traditional management methods, the BBS evaluates both financial and non-financial (operational, external, etc.) measures. KPMG's approach provides the framework for carefully analyzing strategic and tactical processes as they relate to, and affect the performance measures. In addition, the BBS is used to document and define the cause & effect relationships (linkages) between key measures, processes or functions.
KPMG's proprietary 8-step and 3-phase methodology for implementing BBS improves two extremely important elements of communications within the organization:
- It involves all employees in developing a clearer understanding of the strategic business model. This can be the most significant piece of two-way involvement and communication undertaken by an organization.
- Once implemented, the BBS is continually communicating and reinforcing the declared strategy, the actions necessary to deliver it, and the current level of performance and achievement.
KPMG's methodology allows rapid implementation through the use of our global database of performance measures that are industry, function and process specific.
The benefits of implementing BBS are:
- Assures corporate strategies are clearly communicated throughout the enterprise
- Provides a common framework for strategic planning
- Provides key information by measuring the results of strategic plans and assessing the quality of tactical plans
- Focuses management on cause and effect relationships between processes and key performance indicators
- Creates a balance between financial & non-financial measures and how they impact organizational health
- Instills a high performance culture creating value for customers, employees, suppliers, and stakeholders
- Software automation provides the means to closely monitor the status of the organization and perform interactive analysis of underlying data elements
 Top
For further details contact us
|
