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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.

ing financial measures more relevant. Others have ties—operational measures that are the drivers of said, ‘‘Forget the financial measures. Improve opera- future financial performance. tional measures like cycle time and defect rates; the Think of the balanced scorecard as the dials and financial results will follow.’’

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