The Strategy-Focused Organization: How Balanced Scorecard Companies Thrive in the New Business Environment

Robert S. Kaplan · David P. Norton

Eyl 2000 · Harvard Business Press

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The creators of the revolutionary performance management tool called the Balanced Scorecard introduce a new approach that makes strategy a continuous process owned not just by top management, but by everyone. In The Strategy-Focused Organization, Robert Kaplan and David Norton share the results of ten years of learning and research into more than 200 companies that have implemented the Balanced Scorecard. Drawing from more than twenty in-depth case studies--including Mobil, CIGNA, and AT&T Canada--Kaplan and Norton illustrate how Balanced Scorecard adopters have taken their groundbreaking tool to the next level. These organizations have used the scorecard to create an entirely new performance management framework that puts strategy at the center of key management processes and systems.

Kaplan and Norton articulate the five key principles required for building strategy-focused organizations: 1) translate the strategy into operational terms, 2) align the organization to the strategy, 3) make strategy everyone's everyday job, 4) make strategy a continual process, and 5) mobilize change through strong, effective leadership. The authors provide a detailed account of how a range of organizations in the private, public, and nonprofit sectors have deployed these principles to achieve breakthrough, sustainable performance improvements.

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Robert S. Kaplan is the Baker Foundation Professor at the Harvard Business School. He has been a codeveloper of both activity-based costing and the Balanced Scorecard. David P. Norton is a founder and director of the Palladium Group, a consultancy focusing on strategy execution, and is codeveloper of the Balanced Scorecard.