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HBR'S 10 Must Reads: The Essentials by Michael Porter, Clayton Christensen, Peter Ferdinand Drucker, Harvard Business Review

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Putting the Balanced Scorecard to Work

by Robert S. Kaplan and David P. Norton

TODAY’S MANAGERS RECOGNIZE the impact that measures have on performance. But they rarely think of measurement as an essential part of their strategy. For example, executives may introduce new strategies and innovative operating processes intended to achieve breakthrough performance, then continue to use the same short-term financial indicators they have used for decades, measures like return-on-investment, sales growth, and operating income. These managers fail not only to introduce new measures to monitor new goals and processes but also to question whether or not their old measures are relevant to the new initiatives.

Effective measurement, however, must be an integral ...

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