Customizing the Balanced Scorecard
Translating a comprehensive set of objectives into performance indicators is difficult.
The Balanced Scorecard Overview
Originally designed by Norton and Kaplan and now utilized in one form or another by most Fortune 500 companies, the Balanced Scorecard is a powerful tool in defining what management means by “performance” and measures whether management, business units, or individuals are achieving desired results. Companies such as Exxon Mobile, Bank of Scotland, and American Express have comprised customized Balanced Scorecards to help measure the overall health and gain a better understanding of how their core activities align with their strategy. Ultimately, the Balanced Scorecard translates mission and vision statements into a comprehensive set of objectives and performance indicators that can be quantified.