Balanced Scorecard

In this classic article from January 1992, authors Robert Kaplan and David Norton proposed a way of measuring an organization's performance from several perspectives at once. During a year-long research project with 12 companies at the leading edge of performance management, the authors developed a 'Balanced Scorecard', a new performance measurement system that gives top managers a fast but comprehensive view of their business. "The Balanced Scorecard" includes financial measures that tell the results of actions already taken, and it complements those financial measures with three sets of operational measures related to customer satisfaction, internal processes, and the organization's ability to learn and improve the activities that drive future financial performance. Armed with that knowledge, the authors say, executives can glean a complete picture of where the company stands and where it's headed.