IT Governance and the Balanced Scorecard
Balanced Scorecard History
The balanced scorecard method, also known as the BSC, was created in 1987 at Analog Devices, a mid-sized semiconductor company. However, the method came to the fore following the publication of an article by Robert S. Kaplan and David Norton, titled 'The balanced scorecard: measures that drive performance'.
This was followed in 1996 by the best selling book, defining the method. This acted as a catalyst of sorts, leading to wide scale adoption of the techniques in subsequent years.
What is the Balanced Scorecard?
The balanced scorecard is a framework for measuring an organizations's activities in terms of its vision and strategies.
It seeks to measure a business from four perspectives:
The BSC approach has spawned many derivities and related methodologies, and certainlt, the evolution in this respect continues.
- Financial perspective
- Customer perspective
- Business process perspective
- Learning and growth perspective
Balanced Scorecard's Future
The balanced scorecard has not enjoyed the same level of 'hype' as some of the other methods, yet it persists. One reason for this is the scope for derivations, and flexibility.
BSC will certainly continue to play a significant role in the IT Governance arena, although it is unlikely to challenge the big hitters for prominence.
Identified Source References for this Article:
Balanced Scorecard Institute
Amazon: The Book
SAS Balanced Scorecard