Balanced Scorecard Journal

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The development of the Balanced Scorecard as a strategic management tool
2GC Conference Paper
Ian Cobbold and Gavin Lawrie Presented at PMA Conference, Boston, USA, May 2002

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Definition of what comprised a Balanced Scorecard was sparse and focused on the high level structure of the device. Simple ‘causality’ between the four perspectives was illustrated but not used for specific purpose. Kaplan and Norton’s original paper’s focus was on the selection and reporting of a limited number of measures in each of the four perspectives (Kaplan and Norton, 1992). The paper suggested use of attitudinal questions relating to the vision and goals of the organisation to help in the selection of measures to be used, and also encouraged the consideration of ‘typical’ areas of interest in this process. Kaplan and Norton’s original work makes no specific observations concerning how the Balanced Scorecard might improve the performance of organisations; the implication is that the provision of
2GC Conference Paper: The Development of BSC as a Strategic Management tool
© 2GC Limited, 2001, 2003. All rights reserved.

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accessible relevant measurement data itself will trigger improved organisational performance. However, they do imply that the source of these improvements is changes in behaviour: “It establishes goals but assumes that people will adopt whatever behaviours and take whatever actions are necessary to arrive at those goals”. In the light of this, the basis for selecting the goals represented by the Balanced Scorecard is of some
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