As a value indicator, the Balanced Scorecard method links business strategy with financial performance. In this case, the traditional metric of financial performance is balanced by three more fluid activities: customer relationships, operational excellence and the organization’s ability to learn and improve. Because the Balanced Scorecard requires every action to answer to established corporate goals, using the Scorecard within IT can help promote alignment and eliminate projects that contribute little or no strategic value. Here’s more on what you need to know about the Balanced Scorecard. Case Study: Why You Keep Score BNSF Railway uses the Balanced Scorecard to prove IT’s value and to create synergy with business strategy How to Use the Balanced Scorecard Developed in the early 1990s, this valuation methodology converts an organization’s value drivers-such as customer service, innovation, operational efficiency and financial performance-to a series of defined metrics. Companies record and analyze these metrics to help determine if they’re achieving strategic goals. Nevertheless, installing the Balanced Scorecard within IT is a challenge. Three Questions with Robert Kaplan CIO catches up with Robert S. Kaplan, Marvin Bower professor of leadership development at Harvard Business School and the co-creator of the Balanced Scorecard, to hear his thoughts on the state of the Scorecard. Balancing Scorecards With Reality The Balanced Scorecard is useful because it is grounded in reality. We can’t have it all; trade-offs are inevitable among financial contribution, customer focus, operational excellence and organization maturity-the four dimensions of the Balanced Scorecard. However, it’s important to distinguish between the Balanced Scorecard and the role of operational measurements. ABC: An Introduction to Balanced ScorecardMost organizations can benefit from a balanced scorecard approach, which can raise the profile of key projects, increase functionality, and predict future performance—and it often leads to greater financial return. Related content brandpost Democratizing HPC with multicloud to accelerate engineering innovations Cloud for HPC is facilitating broader access to high performance computing and accelerating innovations and opportunities for all types of organizations. By Tanya O'Hara Jun 01, 2023 6 mins Multi Cloud brandpost Survey: Marketers embrace AI at expense of metaverse investments Generative artificial intelligence (GAI) has quickly rocked the world of marketing. Sitecore polled B2B marketers on their perceptions of GAI. Here’s what they said. By Dave O’Flanagan, Sitecore Jun 01, 2023 4 mins Artificial Intelligence news Zendesk to lay off another 8% of its staff, cites macroeconomic issues The new tranche of layoffs comes just six months after the company let go of 300 staffers and hired a new CEO in order to navigate its operations through macroeconomic distress. By Anirban Ghoshal Jun 01, 2023 3 mins CRM Systems IT Jobs feature 5 CxOs on leading change To be the agents of change that businesses require today, IT leaders must embrace a flexible mindset, prep their orgs for change, and recognize that intention and purpose are vital to empowering transformation. By Dan Roberts Jun 01, 2023 13 mins Digital Transformation Change Management IT Leadership Podcasts Videos Resources Events SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe