The full title of this book by Robert Kaplan and David Norton is
The Balanced Scorecard: Translating Strategy into Action
In my review posted on Amazon.co.uk, I gave it Three Stars.
Here is my review.
Sensible idea backed by brilliant marketing.
Back in the early 1990s I was thinking a lot about performance measurement in a manufacturing business and I wanted to reflect more non-financial factors that provided a more balanced view and cascaded our main business objectives down the organisation.
When I read the book I found that the authors shared many of the same ideas as I did. This was no surprise when much of it is common sense when you take the time and trouble to think about it. The problem at that time was few people were really thinking beyond financial measures and a few productivity based volume metrics.
What they did, that I didn’t, was 1) come up with a catchy name and 2) swing a brilliant marketing campaign behind it.
The strength is that when this is explained, it all seems so logical. Of course you need to link KPI to your strategic objectives with a good balance of leading measures that predict future performance with the all important, but lagging, financial numbers.
The weakness is that it’s much harder to do in practice. There’s a cost involved in measuring and reporting anything and the value of monitoring has to come from corrective and supporting actions.
The balanced scorecard has gone on to be extremely popular with big companies and the logic of a balanced set of performance metrics needs to be rippled down into the independently owned SMEs. While this book began it all, there are better books that update the ideas and give you a clearer idea of how to implement eg Paul Niven’s book “Balanced Scorecard Step-by-Step: Maximizing Performance and Maintaining Results“.
There are many thousand of business books, you can see the full list of my reviews at Business Books Reviews by Paul Simister
(Please click). I've also narrowed these down to a list of the 12 Best Business Books For Business Owners & Entrepreneurs
Get To Know Me
Paul Simister is a business coach who helps business owners who are stuck or struggling with disappointing marketing, to get unstuck. You can then start attracting, converting and keeping more customers.
If your business is based in the UK and you feel stuck, get a Business SOS consultation for up to 2 hours (please click) with me to get you unstuck.
Don't forget to download and read my FREE Report - The SIX Steps PROFIT Formula: The Simple Rules That Every Small Business Owner Needs To Know available to download at Six Steps Report