The Aligned Balanced Scorecard: An Improved Tool for Building High Performance Organizations

October 2008
Organizational Dynamics;2008, Vol. 37 Issue 4, p378
Academic Journal
This article proposes an "Aligned Balanced Scorecard (ABS)" in order to correct some problems encountered when applying a traditional scorecard approach. Using the Baldrige philosophy of the centrality of processes, the ABS links company strategies to the scorecard through the learning and development perspective. The learning and development perspectives are then linked to internal process performance goals. This innovative approach provides leaders with a better understanding of the interrelationships between processes, goals, and performance. The ABS focuses on the centrality of internal processes as the main driver of the organization; therefore, customer satisfaction and financial performance are viewed as outcomes of internal processes. As a result, in the ABS, process performance drives customer satisfaction and financial performance. As employees are central to process performance, leaders can use the ABS as a tool to support the building of actions plans and performance measures. These plans and measures can then be used to establish performance goals aligned to reinforcement programs in order to support the type of persistent effort needed in high performance organizations. A comprehensive example is provided to demonstrate how the ABS would be applied to a work setting.


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