Management system



The Balanced Scorecard as an organizational system for measuring and managing enterprise business performance is today used and adopted throughout the world by all types of organizations: governmental, non profit or business organizations.


However, as there is not a common body of knowledge on how a management system based on the balanced scorecard concept should be used and implemented, different organizations use different methodologies and implement different Balanced Scorecard management systems.

Many consulting companies offer today advisory services, assisting organizations with implementing Balanced Scorecard based management systems. The level of branding for these services varies.


Balanced Scorecard based Integrated Performance Management System - eab group, Australia

While not branded and marketed as such, eab group’s approach to implementing a Balanced Scorecard based management system is a comprehensive approach to managing organizational performance in an integrated way across organizational levels. The main pillars are four key elements – the Desired State of Evolution, the Strategy Map, the Performance Scorecard and the Portfolio of Initiatives. Supporting these are a series of secondary components of the system, such as a catalogue of documented KPIs, a catalogue of documented initiatives,  operational dashboards and performance reports. Linking everything together is a set of processes, that make the system alive and relevant.


Third generation Balanced Scorecard - 2GC Active Management, UK

2GC Active Management (a UK based consultancy) has developed its own approach to implementing a Balanced Scorecard based management system, called “The Third Generation Balanced Scorecard”. Elements such as a Destination Statement, a Strategy Map with cause and effects linkages are some of its characteristics.

Some of the more popular management systems based on the Balanced Scorecard are branded commercial solutions, trademarked and marketed by consulting companies.


 Nine Steps to Success - Balanced Scorecard Institute, USA

Nine Steps to Success methodology is a systematic approach of developing and implementing a strategic management system based on the Balanced Scorecard. The implementation system regards turning the scorecard into a true management system and deploying, managing and sustaining the newly created system by following three major implementation stages: automation, cascading and evaluation. (Rohm and Halbach, 2006)


 The Execution Premium Model (XPP) - Palladium, USA

The concept of linking strategy to execution is the basis and theme of Kaplan and Norton’s “Mastering the Management System”,as described in Harvard Business Review in December 2008. They have expanded on this concept and the importance of linking strategy and execution as a cornerstone of performance management, in their 2008 book, The Execution Premium.



BSC concept : Definition


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