“If you cannot measure it, you cannot improve it.” (Lord Kelvin)
The Balanced Scorecard, or BSC, is a strategy performance management tool that helps managers to put in balance four main perspectives (the customer’s perspective, the company’s internal perspective, as well as innovation and improvement). Also, it encourages them to focus on complex cause and effect relationships and on developing a systemic aligned strategy.
When Kaplan and Norton’s second book, The Strategy Focused Organization was published, the Harvard Business Review hailed the Balanced Scorecard (BSC) as one of the most significant contributions to management practice in the last 75 years. However, despite its well-publicized successes, many organizations that adopt a scorecard still fail to achieve the rewards they expect.
The fourth session on the second day of Kaplan Norton Masterclass was Completing the loop: Monitoring, Adapting and Sustaining your Strategy execution system.
Dr. Kaplan started the third session of the Kaplan Norton Masterclass – “Introducing Risk Management into your Strategy Execution” by giving examples of risks in the financial and academic industries and went on to present a framework that could be used for differentiating among different types of risk.
