Balanced scorecard: a guide to real change
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Balanced scorecard

Balanced Scorecard provides a common focus

A guide to real change

The Balanced Scorecard was developed in the early 1990s by Robert Kaplan and David Norton, to provide a new form of strategic management. The key features of the Balanced Scorecard approach are that it:

The balanced scorecard provides a simple but effective answer to the questions "what does the organisation need to do to succeed?" and "how can we get every employee working in the same direction?"

Balanced scorecard and organisational teamwork

The Balanced Scorecard can play a key role in achieving real change in organisational teamwork. Although team/organisational performance is dependent on many things, a major part is played by: These principles makes it easier, for example, for sports teams to build a performance culture than many businesses, because:

The difficulties faced by business

It is often difficult to improve overall organisational performance in a business because the collective goals are unclear. Employees are often only aware of the aims of their own "team island", and regard other team islands as having a different job. Individuals are often motivated to "do their bit", but they lack the overall understanding of where the organisation is going or how the various team islands are supposed to work together for collective good. Whereas a sports team is often characterised by a focus on goals, results and league tables, businesses are often characterised by an absence of such a unifying force.

The role of Balanced Scorecard

The Balanced Scorecard can help overcome such difficulties by providing a focus that unifies all parts of the business. It provides a methodology that turns the eyes of all employees to a single direction. The Balanced Scorecard can therefore be a very effective tool for changing the organisational culture, breaking down the barriers between team islands, creating an overall team culture and thereby improving organisational performance.

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