Transcription of The Balanced Scorecard – Measures that Drive Performance
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The Balanced Scorecard – Measures that Drive Performance
The Balanced Scorecard Measures that Drive Performanceby Robert S. Kaplan and David P. NortonReprint 92105 Harvard Business ReviewHBRJANUARY FEBRAU RY 1992 The Balanced Scorecard Measuresthat Drive PerformanceRobert S. Kaplan and David P. NortonWhat you measure is what you get. Senior execu-other. They realize that no single measure can pro-vide a clear Performance target or focus attention ontives understand that their organization s measure -ment system strongly affects the behavior ofthe critical areas of the business. Managers want abalanced presentation of both financial and opera-managers and employees. Executives also under-stand that traditional financial accounting measurestional a year-long research project with 12 compa-like return-on-investment and earnings-per-sharecan give misleading signals for continuous improve-nies at the leading edge of Performance measure -ment, we devised a Balanced Scorecard a set ofment and innovation activities today s
Managers want a managers and employees. Executives also under- balanced presentation of both financial and opera- ... defined ‘‘reliable, responsive supply’’ differently, ECI created a database of the factors as defined by each Customer-based measures are important, but they ... the greatest impact on customer satisfaction ...
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