The success of Robert Kaplan and David Norton ‘s balanced scorecard model has prompted more than a hundred companies (including popular clients such as Cigna, UPS and Mobil) to come a-rushing for the implementation of their methodology in their own companies. Such a reaction may come unsurprising for a very successful consulting practice that is based on extensive research and careful efforts of innovative revolutionaries like Robert Kaplan and David Norton.
Many companies like the balanced scorecard methodology because like most consequential devices of management, this is quite simple to operate and fairly straightforward. The creators maintain that most companies nowadays focus too much on the wrong set of numbers. Company managers and executives obsess too much over outcomes or indicators that show areas of lag instead of looking at factors that are much harder to measure, such as customer satisfaction, cycle times of productivity and varying levels of innovation. Kaplan and Norton then came up with a simple and efficient management device that is easier to conduct and easier to read,hence, the scorecard format. Such a device is able to describe and track the given goals of a company ‘s performance, and this approach can help many managers accomplish their goals by acting like corporate-specific pin-pointers that rally on the success of measurement. The reasoning behind this is that adequate measurement is able to create a lot of focus for what lies ahead in the company since these are chosen by the managers themselves and communicate such decisions back to the organization.