In any organization, it is quite important to have a roadmap for the future. The most successful organizations typically leverage strategic management tools in an effort to shape a better tomorrow. Working towards a leadership that values results is one way of increasing productivity, improving collaborative effort, and directing the team or organization towards success. Another way to better ensure a brighter future for the organization is through using a balanced scorecard in evaluating performance against shared goals. What is this balanced scorecard? How does it affect results based leadership? Are large organizations the only ones that can benefit from this?
The balanced scorecard concept is one of the most popular strategic planning and management systems and it is used extensively in business, government and even nonprofit organizations the world over. It is widely used to help align the activities of the organization to its strategy and vision. In this way, both internal and external communications can be improved and the performance of the organization can be monitored against its strategic goals.
This concept was first postulated by Dr. Robert Kaplan and Dr. David Norton as a framework for measuring performance that takes strategic non financial performance metrics into consideration. Therefore, measuring performance is no longer just about traditional financial measures - it now becomes more balanced with the inclusion of non financial performance metrics. And this is why working towards a results based leadership is best guided by this kind of concept.
The term was first introduced in the early part of the 1990s. However, management theorists believe that its roots are deep, including the pioneering work on performance measurement reporting made by General Electric in the 1950s and the Tableau de Bord of French process engineers in the early part of the 1900s. Since then, the concept has evolved from being a mere framework for performance measurement into a complete strategic planning and management system. The new scorecard concept aims to transform the strategic plan of the organization from being an attractive piece of document into organizational marching orders that must be complied with on a daily basis.
Today, the balanced scorecard concept goes well with a results based leadership in giving more than just a framework for measuring performance. It also helps strategic planners in identifying what needs to be done and what needs to be measured. In this way, strategic plans can truly be executed the way they should be.