Customer Reviews

Balanced Scorecard Step-by-Step: Maximizing Performance and Maintaining Results

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This book gives you the power to say "Thank you, but no thank you" to the legions of high-priced consultants (like myself) who offer to help design, establish and implement your company's balanced scorecard.

While Robert Kaplan did write the introduction, he and Norton must be very dissappointed that they didn't write this book -- I'm certainly sorry that I didn't write it. Author Paul R. Niven provides all the tools, methodologies and steps necessary to create and execute your own balanced scorecard. He's held nothing back. It's all here. Whether you lead a local non-profit or are the CEO of a Fortune Global 500 corporation (like my clients), Niven has provided detailed step-by-step instructions for both of the key phases of the balanced scorecard project:

I. Planning Stage:
Step One: Develop objectives
Step Two: Determine appropriate organizational unit(s).
Step Three: Gain executive sponsorship.
Step Four: Build your balanced scorecard team.

Step Five: Formulate your project plan.
Step Six: Develop a communication plan.

II. Development Stage:
Step One: Gather and distribute background material.
Step Two: Develop mission, values, vision, and strategy.
Step Three: Conduct extensive interviews.
Step Four: Develop objectives and measures.
Step Five: Develop cause-and-effet linkages.
Step Six: Establish targest for your measures.
Step Seven: Develop the implementation plan.

This book is fantastic. In fact, I'm thinking about placing a bulk order for the book to give to all my clients. On second thought, why give away all the "secrets?" Seriously, this is one of the best business and management books I've read this year. Overall grade: AAA+++/Highly Recommended.

In Balanced Scorecard Step-by-Step, Paul R. Niven expands upon the balanced scorecard methodology he originally developed with Dave Norton 10 years earlier. Balanced Scorecard is designed to focus an entire organization on implementing and improving its strategy. In this book, Niven puts the Balanced Scorecard approach into practice, focusing on the details of implementation and the role of leadership in establishing and maintaining the program. We from getAbstract recommend this book for any executive looking for nuts-and-bolts knowledge about a performance measurement system that grew into a comprehensive management philosophy.

As a recently retired Bank Executive, I have to say that I wish this book had been published when I was still working, as it would have helped me and others at the Bank in developing a better understanding on how to obtain ALL of the benefits of the scorecard process. It's clear to me after reading Niven's book that we really didn't do a thorough job of implementing the Scorecard process, yet interestingly enough, we managed to enjoy many benefits which otherwise would have alluded us! We didn't use any outside expertise to assist us with installing the system and I think, in retrospect, this may have been a mistake. Niven's book is very well written and I was impressed with the many sources he referenced. The book can be of considerable value to those contemplating the implementation of the Scorecard as well as those who are using it now but are unsure of how well they've done in implementing amd maintaining it. Niven's approach to explaining all aspects of the process makes for easy reading to the layman. A must read for all executives!

It is noteworthy that Robert S. Kaplan wrote the Foreword to this book. He and David P. Cohen are the co-authors of three other books on this important subject: The Balanced Scorecard: Translating Strategy into Action, The Balanced Scorecard: Measures That Drive Performance (HBR OnPoint Enhanced Edition), and most recently The Strategy-Focused Organization: How Balanced Scorecard Companies Thrive in the New Business Environment. In the Preface, Kaplan graciously welcomes "this new book to the Balanced Scorecard literature" and goes on to suggest that "Niven's contribution will enable many more organizations to achieve successful Balanced Scorecard implementations."

Given the potential benefits of such a program, one which provides a measurement system that balances the historical accuracy and integrity of financial numbers with today's drivers of economic success, I strongly recommend that Kaplan and Norton's books also be consulted. The total cost seems a small price to pay for the substantial value that will be derived.

Here is how Niven organizes his material :

Part One: Introduction to Performance Measurement and the Balanced Scorecard

Its purpose is to "familiarize [the reader] with the field of performance measurement and provide a solid grounding of Scorecard background and principles."

Part Two: Step-by-Step Development of the Balanced Scorecard

Next, Niven provides his reader with "a detailed review and description of the elements necessary to construct this new and powerful management tool."

Part Three: Embedding the Balanced Scorecard in the Organization's Management System

Then Niven shifts his (and his reader's) attention to implementing -- literally step-by-step -- a cohesive, comprehensive, and cost-effective system based on the aforementioned principles (Part One) and elements (Part Two). This marks the "Scorecard's transition from a measurement system to a strategic management tool." Niven explains in Chapter 8 how to align every employee's actions with the organization's overall goals.

Part Four: Sustaining Balanced Scorecard Success

Niven carefully examines the importance of frequent reports on results (to date) which both broaden and (more importantly) deepen support of the Scorecard within the organization. To repeat, the Scorecard is an effective management tool as well as a source of measurement information.

Part Five: Balanced Scorecard in the Public and Not-for-Profit Sectors and Concluding Thoughts on Scorecard Success

The "many advantages conferred by a the Balanced Scorecard" were recognized and appreciated almost immediately by public-sector and not-for-profit organizations. This "rising trend" serves as Niven's focal point in Chapter 13 and then, in the final chapter, he shares some concluding thoughts.

These specifics are provided so that those who read this review will have a clearer understanding of the scope of what Niven offers. No brief commentary such as this, however, can adequately suggest the depth of his probing analysis. He wrote the book for decision-makers in organizations which are now deciding whether or not to commit to a Balanced Scorecard program. Also for decision-makers in other organizations within which such a program is now underway. Niven concludes his Preface with Euripides' especially relevant comments on the importance of balance, first expressed almost 2,500 years ago: "The best and safest thing is to keep a balance in your life, acknowledge the great powers around us and in us. If you can do that, you are really a wise man." I wholly agree with Niven that "the same applies to organizations."

Implementing a balanced scorecard effectively is a very tricky business and this book guides the reader through a path that ensures success, offering many helpful tips and pointing out potential pitfalls along the way. The author, Paul Niven, brings a wealth of practical experience as a balanced scorecard project leader and consultant. Robert Kaplan and David Norton reference Niven's award-winning work implementing a balanced scorecard at Nova Scotia Power in their book, Strategy Focused Organization. In fact, Robert Kaplan contributes the forward to the book, recommending it as the next step after reading his and Norton's seminal books on Balanced Scorecard theory. This is a great resource for those challenged to bring in real results for their balanced scorecard projects.

If you are interested in the experience of companies that implemented the BSC, read the Kaplan and Norton books. Now if you want to learn HOW TO actually DO IT then this book is for you. Instead of selling the reader on the BSC concept Paul Niven teaches the BSC step by step - just like the book title says. I particularly liked Chapter 5 - commonly used measures from each of the BSC perspectives. This is a good book to have if you are implementing or planning to implement the BSC.

This book makes BSC theory utterly accessible. It provides an appropriate amount of background for those who do not know BSC theory well, but the balance of the book is dedicated to implementing BSC for almost any type of company (profit, non-profit, public sector). Niven's language is clear and thorough and his book serves as a step-by-step implementation plan for BSC.

Mr. Niven has done an excellent job. It is easier and more entertaining to read his book than the books by the masters of BSC (Kaplan and Norton).

The book is well organized, the order of the topics is very logical and easy to follow. When he summarizes concepts, he does it very well, writing just enough to discuss the subject.
Implementing BSC is not an easy task, but with this book you have a very good guide.

I would say that Mr. Niven has outperformed his teachers!!!

Good book for those who are new to Balanced Scorecard. The writer wrote it in a thorough and easy to read way. I highly recommend it to anyone who wants to learn this management tool and to implement it in their organization.

I have just finished writing a major paper on the application of the Balanced Scorecard within local government. Niven's book was instrumental in increasing my understanding of the concept. It's very clear and easy to read.