Professor Robert Kaplan and Dr David Norton were in Edinburgh last week to receive honorary fellowships from CIMA, marking 20 years of the Balanced Scorecard (BSC) system.
Back in 1992, the performance management landscape was an “ugly picture” with around 90% of organisations failing to execute their strategy and 95% of employees not knowing what the strategy of their organisation was.
Fast-forward to 2012 and now more than 70% of companies across the world now claim to use the BSC. But what will the next 20 years hold for the scorecard?
Speaking at a CGMA event at the University of Edinburgh, the BSC creators were on hand to map out the next phase in the performance management saga.
Dr Norton took on the big question of whether the BSC was now “obsolete” and put forward the major challenges facing performance management going forward.
He said the BSC “must adapt to remain relevant” to a world that demands greater transparency, corporate responsibility, better risk management and changing patterns of human capital management.
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About Robert Lovell
Business and finance journalist