Design Process For A Third-generation Balanced Scorecard
The design process for third-generation balanced scorecard requires the active involvement of the entire management team who will eventually use the balanced scorecard. The managers themselves, not external experts, make all decisions about the balanced scorecard content. The process begins with the development of a ‘destination statement’ to build management consensus on longer term strategic goals; this document is then used to build a ‘strategic linkage model’, describing the shorter term management priorities, both the strategic activities to complete and the strategic outcomes to achieve. Once the ‘strategic objectives’ are decided these are assigned ‘owners’ from within the management team, who subsequently define the objective itself, plus the measures and targets associated with the objective. The main apparent improvements with this third generation of balanced scorecard relate to the greater relevance of the strategic objectives, because objectives are selected in the context of the organisation’s longer-term strategic goals, using a destination statement, and the greater “ownership” of the objectives by managers, because objectives are selected and defined by the responsible managers themselves.
Read more about this topic: Third-generation Balanced Scorecard
Famous quotes containing the words design, process and/or balanced:
“With wonderful art he grinds into paint for his picture all his moods and experiences, so that all his forces may be brought to the encounter. Apparently writing without a particular design or responsibility, setting down his soliloquies from time to time, taking advantage of all his humors, when at length the hour comes to declare himself, he puts down in plain English, without quotation marks, what he, Thomas Carlyle, is ready to defend in the face of the world.”
—Henry David Thoreau (1817–1862)
“To exist as an advertisement of her husband’s income, or her father’s generosity, has become a second nature to many a woman who must have undergone, one would say, some long and subtle process of degradation before she sunk [sic] so low, or grovelled so serenely.”
—Elizabeth Stuart Phelps (1844–1911)
“... all the cares and anxieties, the trials and disappointments of my whole life, are light, when balanced with my sufferings in childhood and youth from the theological dogmas which I sincerely believed, and the gloom connected with everything associated with the name of religion, the church, the parsonage, the graveyard, and the solemn, tolling bell.”
—Elizabeth Cady Stanton (1815–1902)