Balanced Scorecard and Executive Dashboard

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Robert Kaplan and David Norton's Balanced Scorecard

Balanced Scorecard, a radical approach

Balanced Scorecard is a radical approach that is not satisfied by homeopathic treatments. In contrast to conventional wisdom, the Robert Kaplan and David Norton's Balanced Scorecard is not a new method to design dashboards.
Balanced Scorecard offers a more global dimension of driving performance by defining a rigorous framework to develop strategy and a methodology to decline it.


Explanation

The theme of dashboards design tends to occupy a prominent place fairly representative of unfulfilled expectations of companies as regards management.
Until recent decades, the issue of management support was indeed less present.

When the environment was stable and competition particularly low, the search for a continuous increase of productivity and lower cost of goods was still the best strategy. The dashboards of that time, limited to purely economic and high-productivity measures, were quite suitable.

Today, the context has changed dramatically. To ensure a real return on the invested capital, more consistent strategies must be developed. Only following the financial measures is not enough.

The loop is too slow and doesn't allowed us to react in time. We must therefore follow more precisely the continuous progress in the ways chosen by the management team during the development of the strategy.

How does the company sees its competitive advantage?

  • By faster and faster lead times?
  • By better customer service?
  • By a constant renewal of products and offers?
Whatever the chosen competitive advantage, once the strategy is developed and declined on the ground, each concerned components must be measured precisely to ensure a true continuous improvement.

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