Stories by Graham J. McFarlane

IT and the Balanced Scorecard

During the mid-1990s, Robert Kaplan and Dick Norton developed the ideas for a Balanced Scorecard (BSC) approach to measuring long-term organizational performance. Until then, stakeholders relied mainly on financial statements as the chief measure. The BSC approach postulated that a combination of other high-level metrics, combined with financial performance, would be more indicative of a longer-term outlook for continued organizational success. In other words, additional measures, dealing with strategic plans, people management, customer satisfaction and relationships, would provide a more balanced outlook for sustained performance.