Planning and Budgeting (Linking Operational Control Processes to Strategy)

Integrating the Balanced Scorecard with an organization's planning and budgeting processes is critical for creating a Strategy-Focused Organization. Most organizations use the budget as their primary management system for establishing targets, allocating resources, and reviewing performance, and few have integrated their budgeting and performance review processes with the strategic planning process. This chapter shows how companies have used a strategy-focused management system based on the Balanced Scorecard to integrate these processes and overcome important barriers to strategy implementation.