Kaplan&Norton Balanced Scorecard Summary

Reading 3.6

Kaplan, R. S., & Norton, D. P. (2006). Aligning internal process and learning and growth: Integrated strategic themes. Alignment: using the balanced scorecard to create corporate synergies (pp. 77-118). Boston: Massachusetts: Harvard Business School Press.

Recommendation: Although a little difficult to follow through with overall this reading is useful to the action plan as it looks at the strategies of an organisation; incorporate all departments of a company.

It applies the balanced scorecard management system to corporate-level strategy. The reading provides case studies, frameworks, and sample scorecards that show how to align business and support units, boards of directors, and external partners with the corporate strategy and create a process that will ensure that alignment is sustained.

Kaplan & Norton explore the chances organisations can take advantage of by ‘aligning their internal business process and their intangible assets to achieve enterprise-level synergies.’ It further discusses four types of ‘enterprise value propositions: shared processes and services, vertical integration, intangible assets, and corporate-level strategic themes.’

What is the balanced scorecard?

The balanced scorecard is a strategic planning and management system that is used extensively in business and industry, government, and non-profit organisations worldwide to align business activities to the vision and strategy of the organisation, improve internal and external communications, and monitor organisation performance against strategic goals.

http://www.balancedscorecard.org/BSCResources/AbouttheBalancedScorecard/tabid/55/Default.aspx

Synergies from shared processes and services (pp110)

The value from sharing processes and services arises in two ways:

1. Enterprises gain economics of scale by centralising processes.

2. They capture the benefits of creating a centralised resource having specialised knowledge and expertise in how to operate a key...