THE BALANCED SCORECARD

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Like it or not, most organizations today are aware of the critical need for new strategies to meet new challenges. Life in the business world has changed and will change over and over again in the foreseeable future. That comfortable feeling from operating a business “how we’ve always done it before” is scarce and getting scarcer! Successful companies are building and continually rebuilding their roadmaps to guide them through labyrinths of business challenges. And they will thrive best if they are also focused on selecting and retaining the right talent for their jobs!

Fortunately, there are plenty of excellent resources for organizations to leverage in creating new strategy roadmaps. The concept of the “Balanced Scorecard” is one such resource. It was introduced by Robert S. Kaplan and David P. Norton in 1996 (“The Balanced Scorecard – Translating Strategy into Action”), and has achieved prominence in the eyes of major corporations who have implemented it. The four-part scorecard consists of Financial, Customer, Internal Processes and Learning and Growth. It provides a solid yet flexible framework for reviewing current performance in each target area, plus mapping new strategies for the future and tracking accountabilities.

Kaplan and Norton’s latest book, “The Strategy-Focused Organization – How Balanced Scorecard Companies Thrive in the New Economy” (Harvard Business School Press, 2001), reveals insight into implementing this performance management framework. After years of balanced scorecard implementations in large and small organizations, they note that success is not just dependent on the strategies contained in the scorecard. The major success factor revolves around the dynamics of executive leadership teams and their “abilities to transform themselves into problem-solving teams.”

Teams need a variety of talent and communication styles to be resilient and effective. Their ability to interact openly with each other and the rest of the organization is critical to achieving performance goals in all areas of the balanced scorecard. Kaplan and Norton note that the outdated “command and control” model of leadership just does not work anymore.

Human performance proves again and again to be the key success factor in making strategic business initiatives work, as in the implementation of the balanced scorecard. The investment made in selecting the right talent for evolving jobs – especially in leadership roles – continues to be the most valuable business investment for the future success of any business.

How does your business measure human performance? Do you have the right talent in place for the unique challenges of today’s evolving business world?

Face the future with confidence through effective human performance management. Contact us today to discuss how the TriMetrix System can lead your company to success with customized job benchmarking, talent selection and personal development.