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The Strategy-Focused Organization: How Balanced Scorecard Companies Thrive in the New Business Environment Hardcover – September, 2000
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From the Back Cover
-Clayton Christensen, Professor, Harvard Business School, and Author, The Innovator's Dilemma
"Kaplan and Norton chronicle the long-overdue shift from management 'by the numbers' to a performance management process that places well-articulated, knowledge-based strategies at the center of every employee's activities. Given the pace of change in the new economy, strategy-focused processes that are measurable, repeatable, and supported by superior information are the only true sources of sustainable competitive advantage. Organizations that ignore this reality do so at their own risk."
-James H. Goodnight, President & CEO, SAS
"The Balanced Scorecard is an innovative performance management tool that provides enormous help in tackling the tough job of managing state government for results."
-Gary Locke, Governor, State of Washington
"Kaplan and Norton's framework is clearly taking hold as a business model for today and tomorrow. Our own Balanced Scorecard journey has allowed us not only to 'tell the story of our strategy' and deliver positive results for our stakeholders, but to unite our team members around a system that measures, rewards, and motivates performance based on achieving goals that move our company forward." -Dieter Huckestein, Hotel Division President, Hilton Hotels Corporation
"The Strategy-Focused Organization recognizes and reinforces organization issues and moves the Balanced Scorecard from a strategic imperative to a business result. Leaders in all functions-and at all levels-will find it a useful blueprint for turning strategy into action."
-Dave Ulrich, Professor of Business Administration, University of Michigan
Top Customer Reviews
Building on their Balanced Scorecard approach, Kaplan and Norton have developed an impressive framework in The Strategy-Focused Organization for the implementation of strategy. They have found that 90% of strategic initiatives fail due not to formulation but to implementation difficulties. Successful implementation of strategy requires all parts of an organizations to be aligned and linked to the strategy, while strategy itself must become a continual process in which everyone is involved. The Balanced Scorecard, originally seen by the authors as a measurement tool, is now presented as a means for implementing strategy by creating alignment and focus.
Financial measures report on lagging financial indicators. The Balanced Scorecard aims to report on the drivers of future value creation. The book shows in detail how this is done from four perspectives: Financial, customer, internal business perspective, and learning and growth (these are outlined on p.77). These four perspectives produce a highly detailed framework when combined with the five principles of a strategy-focused organization: 1: Translate the strategy to operational terms. 2: Align the organization to the strategy. 3: Make strategy everyone's everyday job. 4: Make strategy a continual process. 5: Mobilize change through executive leadership.
Absorbing every detail of this book will require many hours. The sheer detail of this complex system requires considerable attention, perhaps more than some readers can muster, but clearly distinguishes this work from many books full of business fluff. The style tends to be turgid and pedantic while being admirably complete.Read more ›
1. Translate the strategy to operational terms
2. Align the organization to the strategy
3. Make strategy everyone's job
4. Make strategy a continual process
5. Mobilize change through executive leadership
The first four principles focus on the the Balanced Scorecard tool, framework, and supporting resources; the importance of the fifth principle is self-evident. "With a Balanced Scorecard that tells the story of the strategy, we now have a reliable foundation for the design of a management system to create Strategy-Focused Organizations.Read more ›
stars. It is one of the ten most important business books of the past
decade. The book successfully outlines an enormous improvement in
communications practices for making important changes in for profit
and nonprofit organizations. The communications stall is the most prevalent one
in most organizations. Application of the authors' ideas can bring
about a significant improvement in our society.
This book is an
interim report on the application of the authors' concept, the
Balanced Scorecard (introduced in 1992 and described in the book of
the same name, published in 1996). The purpose of the book is to
provide "a roadmap for those who wish to create their own
Strategy-Focused Organization . . . [by employing the Balanced
If you don't know what the Balanced Scorecard is,
let me briefly describe it for you. A Balanced Scorecard adds several
important measures to the ones normally found in the accounting
system, designed to measure those areas where performance most
directly and powerfully affects strategic position. Such areas
include innovation, organizational learning, effectiveness in key
tasks, and performance with key audiences like customers. The
measures are chosen to reflect the systematic effects of how the
organization's overall value and performance are improved, and are
displayed in a Strategy Map that communicates those ideas to one and
all. In doing so, the Balanced Scorecard is the applied solution to
many of the issues raised about how to establish a learning
organization in Peter Senge's The Fifth Discipline.Read more ›
Most Recent Customer Reviews
Making your goals visible to others in a way they and you can act on is critical. This book helps you in a practical easy to understand way.Published 5 months ago by Anne Finch
I bought a hardcopy version of this book many years ago. It revolutionized my thinking on performance management. I bought the Kindle edition to brush up.... Read morePublished 8 months ago by William S. Holland
I probably should have written this review a couple of years ago while the contents were fresh but I decided to give it a try anyways. Read morePublished 16 months ago by CARLOS L.
If you are working with Balanced Scorecards and haven't read this book, shame on you. :-)
Some many books reference the work of Kaplan and Norton but do such a poor job... Read more
Instead of a mere financial management, you can go with this tool to design a performance management process, based on strategies that reach any operational corner on your... Read morePublished 24 months ago by Pedro Lopez
The book was a referral. Its worth more that whats written.
It gives a complete picture of business strategy and its focus.