THE BALANCED SCORECARD: FROM DISRUPTIVE TO SUCCESS MANAGEMENT CLASSIC

The business world is full of variables and competitive advantages as managers must be controlled to achieve the goal is not to become an insane task. These variables must be controlled and precisely quantified through quantifiable measures and indicators that tell us the accuracy of our actions in time.

In 1992, economists Robert Kaplan and David Norton, published in the Harvard Business Review study on the creation and development of the Balanced Scorecard in the company. This idea was so innovative among senior corporate positions, not only management tool used to communicate the company’s strategy, but also to manage the business and analyze their behavior and correct deviations.

The relationship between the expected and achieved is a continuous comparison that we make in the company to avoid unpleasant surprises at the end evalucación of our business, so I always recommend running the tool that Kaplan and Norton proposed in his day, and already it is a classic success in business management: A Scorecard. It is a useful tool for all businesses, but especially for companies that want a comprehensive but easily adaptable to their actions control, not only financially, the simple relationship between investment and expenses, but also to other levels of the company, such as actions to be implemented in human resources, communications, public relations, trade, open markets, internationalization, research and development, etc...

Although it is true that initially the Balanced Scorecard oriented analysis to four basic areas of the company, these are: growth and business development, market leadership, market position and performance of investments.

As we see, the Balanced Scorecard (Balanced Scorecard, in English) it facilitates business management at all levels, as applicable and flexible for each corporate business level, and, of course, there is a different model for each company are the same company executives who must know how and what values and indicators to implement your own Balanced Scorecard, and at what level should apply interdepartmental.

The basic intention of the Balanced Scorecard is to give us those business factors threatening our business. We also indicates which of those factors are already acting negatively to our business, and therefore helps to correct the deviations long before they occur. Although we must bear in mind that the initial time to create a good Scorecard is 16 weeks, according to Kaplan and Norton.

If we are attentive to the data and indicators Scorecard, making business decisions entail less risk for our company, because we have some historical indicators that informs us of the trend to continue, and the evolution of the business, and therefore, these data are converted into a tool that helps us define and hit our next business strategy, leading to a reduced risk in our actions.

Following the publication of the first article published by Kaplan and Norton on this subject, there have been many publications about it, but I especially recommend a book that I read at the University, a few years after the publication of the first article by Kaplan and Norton in the Harvard business Review, and which refers to the implementation of the Balanced Scorecard and its implementation in the company, and by the same authors who created this disruptive business management tool: Robert S. Kaplan, David P. Norton. (May, 1999). Scorecard (The Balanced Scorecard: Translating strategy into action). Published in English by Harvard Business School Press Management published in Spanish in 2000. Planet Books.

This is a key work in business management, marking successful and useful for its high degree of effectiveness, I hope you find it as interesting as to employers who already use.