The Balanced Scorecard book cover

The Balanced Scorecard by Robert S. Kaplan Summary

The Balanced Scorecard
Robert S. Kaplan
3.91 (5623 Reviews)
Business
Leadership
Finance
Resumen
Puntos Clave
Autor
Preguntas Frecuentes

Overview of The Balanced Scorecard

The Balanced Scorecard revolutionized business performance measurement beyond financials. How did this framework transform 60% of Fortune 500 companies? Even tech giants like Apple embrace it. Discover why Jack Welch called it "the most important management tool of the past 75 years."

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Puntos Clave

1

When Numbers Tell Only Half the Story

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Picture a pilot navigating through stormy skies using only the fuel gauge. Absurd, right? Yet this is precisely how most businesses operated for decades-steering multi-million dollar enterprises using financial metrics alone. In 1990, twelve companies gathered for a research project that would fundamentally reshape how organizations measure success. What emerged wasn't just another management fad, but a framework so powerful that Jack Welch called it "the most important management tool of the past 75 years." The Balanced Scorecard didn't simply add new metrics to the dashboard-it revolutionized how companies translate vision into reality, transforming abstract strategy into concrete action that every employee could understand and execute. Financial statements are like looking at yesterday's weather report to decide what to wear tomorrow. They're historical records, not crystal balls. When you're driving by checking only the rearview mirror, accidents become inevitable. This backward-looking approach creates particularly dangerous blind spots in today's economy, where intangible assets-customer relationships, employee expertise, brand reputation, innovative processes-generate more value than physical factories or inventory ever could. Consider the pressure cooker most executives face: quarterly earnings calls demanding immediate results. This relentless short-term focus breeds destructive behavior. Companies slash research budgets, postpone employee training, and defer customer service improvements-all to hit this quarter's numbers. The irony? These cuts boost reported income temporarily while quietly demolishing tomorrow's competitive advantage. It's like eating your seed corn to avoid hunger today, guaranteeing starvation tomorrow.

2

Four Interconnected Perspectives That Reveal Strategic Health

3

Strategic Customer Focus and Internal Process Excellence

4

Building Tomorrow's Capabilities and Organizational Alignment

5

Strategy as Dynamic Learning and Continuous Evolution

6

From Measurement to Transformation Across Organizations

7

Reclaiming Strategic Clarity in a Complex World

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@Matt, YC alum
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