The Balanced Scorecard

David Norton presented in town recently at a Canadian Society for Training and Development meeting. He is co-developer of the Balanced Scorecard, now used for setting strategy reliably in many industries. Again its origins go back 15 or more years, but it has been adopted by far more organizations than the more complex Toyota Way. Hearing directly from the author always adds emphasis to the concepts, which by now are widely proven.

David didn't present a lot that was new, but some audience members asked questions as if it was. It's always interesting to see how deeply a tested approach has penetrated... or hasn't. Its entire purpose is to ensure that when setting strategy companies build in goals, visions and measures for more than just financial results. The added ones needed to "balance" the overall picture usually include process improvement (like Toyota), people learning and growth (like Toyota) and customer focus (not so obvious, but clearly in the Toyota system). More and more those who use Balanced Scorecard approaches are including relations with suppliers and other stakeholders, too, in the aim of safeguarding sharehlolders "long term" interests.

It was interesting to see the evolution that's happened in the Scorecard approach itself. Specifically it has become even more clear that managing people well for engagement and commitment are now recognized as broad foundation issues and often key in all the elements, not merely "part of the puzzle." That has broad implications.