Implementing a Balanced Scorecard Management Program

Companies initially adopt the Balanced Scorecard for a variety of reasons, including clarifying and gaining consensus on strategy, focusing organizational change initiatives, developing leadership capabilities at strategic business units, and gaining coordination and economies across multiple business units. This chapter follows the evolutionary path followed by two organizations, National Insurance and Kenyon Stores, to build a new strategic management system, identifying the pitfalls some organizations have encountered in developing a Balanced Scorecard, and providing recommendations for organizing the development and implementation of a scorecard project.