Putting the Balanced Scorecard to Work
Robert S. Kaplan and David P. Norton, Harvard Business Review,1993
學生：黃柏翔
指導老師：任維廉教授
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Outline
 自我介紹
 Summary
 Example
 Rockwater
 Apple Computer
 Advanced Micro Devices
 FMC Corporation
 Conclusion
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自我介紹
姓名
生日
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黃柏翔
2/27
年齡
興趣
慢跑
經驗
全職超商
專長
雜務
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Executive Summary
 The balanced scorecard
 Proposed in January-February 1992 issue of HBR (“The Balanced
Scorecard—Measures that Drive Performance”)
 New measurement system
 Comprehensive framework
 Motivate breakthrough improvement
 Product, process, customer, market development
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Goal
 Perspective
 Financial
 Customer
 Internal process
 Innovation and improvement activities
 New measure
 Management system
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Example
 Rockwater
 Apple Computer
 Advanced Micro Devices
 FMC Corporation
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Rockwater:
Responding to a Changing Industry
 Rockwater’s strategic objectives had to be translated into tangible
goals and actions.
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Rockwater:
Balanced Scorecard
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Building a Balanced Scorecard(1/3)
 Preparation
 Interviews: First Round
 Executive Workshop: First Round
 Interviews: Second Round
 Executive Workshop: Second Round
 Executive Workshop: Third Round
 Implementation
 Periodic Reviews
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Building a Balanced Scorecard(2/3)
Preparation
• Define business units
1st Interview
• Executives, principal shareholders, customer
• Strategic objectives, balanced scorecard
1st Executive Workshop
• Top management team
• Consensus in mission and strategy
2nd Interview
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• Senior executive
• Tentative balanced scorecard
Building a Balanced Scorecard(3/3)
2nd Executive Workshop
• Senior management team, subordinates, middle managers
• Organization’s vision, strategy, scorecard
3rd Executive Workshop
• Senior executive team
• Communicating, integrating, information system
Implementation
• All team
• New executive information system
Periodic Reviews
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• Strategic planning, goal, resource allocation
Apple Computer:
Adjusting Long-Term Performance
 Performance Indicator:
 Customer Satisfaction
 Core Competencies
 Employee Commitment and Alignment
 Market Share
 Shareholder Value
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Advanced Micro Devices :
Consolidating Strategic Information
 Sections:
 Financial measure
 Customer-based measure
 Critical business processes
 New product development
 Process technology development
 Corporate quality
 Organizational learning
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Interview with Larry D. Brady(FMC)
 What’s the status of the balanced scorecard at FMC?
 The cornerstone, it enables us to translate business unit strategies into a
measurement system that meshes with our entire system of management.
 What led you and them to the balanced scorecard?
 We had initiated many of the popular improvement programs: total quality,
managing by objectives, organizational effectiveness, building a highperformance organization.
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 What kinds of measures were you using?
 Make in implementing long-term initiatives.
 How did the balanced scorecard emerge?
 Customer service, market position, and new products.
 How did you launch the scorecard effort at FMC?
 Division managers to develop prototype scorecards for their operations.
 Output measures not process-oriented measures.
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 What obstacles did the division managers encounter?
 Customer and innovation perspectives.
 The measures tended to be nonquantifiable and input- rather than output-
oriented.
 How often do you envision reviewing a division’s balanced scorecard?
 Group managers: monthly
 Senior corporate team: quarterly
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Thoughts on the Scorecard
 The scorecard is trend.
 The diversity of initiatives, each with its own slogan, created
confusion and mixed signals.
 The scorecard as a strategic measurement system, not a measure
of our strategy.
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The Scorecard’s Impact on External
Reporting
 Whether or not the balanced scorecard is applicable to external
reporting.
 Reveal information to competitors.
 Financial community shows little interest in making change.
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Conclusion
 The balanced scorecard is successful.
 Rockwater
 Joseph De Feo, chief executive of Service Businesses
 Analog Devices, a semiconductor company
 The scorecard enables managers to see the breadth and
totality of company operations.
 Strategic objectives
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