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The Balanced Scorecard: Translating Strategy into Action

The Balanced Scorecard: Translating Strategy into Action [Kindle Edition]

Robert S. Kaplan , David P. Norton
4.0 out of 5 stars  See all reviews (24 customer reviews)

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Product Description

Product Description

The Balanced Scorecard translates a company's vision and strategy into a coherent set of performance measures. The four perspectives of the scorecard--financial measures, customer knowledge, internal business processes, and learning and growth--offer a balance between short-term and long-term objectives, between outcomes desired and performance drivers of those outcomes, and between hard objective measures and softer, more subjective measures. In the first part, Kaplan and Norton provide the theoretical foundations for the Balanced Scorecard; in the second part, they describe the steps organizations must take to build their own Scorecards; and, finally, they discuss how the Balanced Scorecard can be used as a driver of change.

From the Author

How to use measurement systems to implement strategy.
We originally developed the Balanced Scorecard to improve performance measurement systems. The Balanced Scorecard retains financial measures, such as return-on-capital-employed and economic value added, and supplements these with new measures on value creation for customers, enhancement of internal processes, including innovation, to deliver desired value propositions to targeted customers, and the creation of capabilities in employees and systems. As companies developed and used their Balanced Scorecard, they soon made it the centerpiece of their management systems. Innovating companies today are using their Balanced Scorecards to (1) gain consensus and clarity about their strategic objectives, (2) communicate strategic objectives to business units, departments, teams, and individuals, (3) align strategic planning, resource allocation and budgeting processes, and, (4) obtain feedback and learn about the effectiveness of their strategic plan and its implementation. The book describes, in detail, the construction and use of the Balanced Scorecard as a strategic management system. Detailed case studies of how Chemical Bank, Mobil, and United Way of Southeastern New England are using their Balanced Scorecards can be obtained from Harvard Business School Publishing (1-800-988-0886).

Product details

  • Format: Kindle Edition
  • File Size: 2876 KB
  • Print Length: 336 pages
  • Publisher: Harvard Business Review Press; 1 edition (2 Aug 1996)
  • Sold by: Amazon Media EU S.à r.l.
  • Language: English
  • Text-to-Speech: Enabled
  • X-Ray:
  • Average Customer Review: 4.0 out of 5 stars  See all reviews (24 customer reviews)
  • Amazon Bestsellers Rank: #124,122 Paid in Kindle Store (See Top 100 Paid in Kindle Store)
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Customer Reviews

Most Helpful Customer Reviews
11 of 11 people found the following review helpful
By A Customer
One of the classic texts of the 1990s, the Balanced Scorecard has brought the importance of performance measurement to a generation of managers. It's still a worthwhile read, although more recent models, like the Performance Prism by Neely, seem much broader in scope.
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9 of 9 people found the following review helpful
1.0 out of 5 stars These are simple business ideas dressed up 24 April 1999
By A Customer
I read the initial Harvard Business Review article years ago and was excited about the concepts. Rushed out to buy the book when it was first available. What a disappointment! This book is little more than business 101: aligning objectives, strategies, tactics with employee work. Important? Yes. Unique? No.
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14 of 15 people found the following review helpful
By A Customer
A much needed overview of why companies (and organizations) need a strategy linked to performance measures in a way that communciates the strategy throughout the organization. As much as I liked "The Balanced Scorecard" it is not as complete in the area of operations implimentation as I need when working with clients. I've found an excellent reference for operations managers to be "Operational Performance Measurement: Increasing Total Productivity" by Will Kaydos. Executives get the Scorecard, operations managers need different insight to make it work for them.
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2 of 2 people found the following review helpful
5.0 out of 5 stars Packed with Knowledge! 30 Jun 2005
By Rolf Dobelli TOP 500 REVIEWER
First published in 1996, this management literature classic builds a bridge between traditional, short-term oriented management systems and a more balanced approach integrating new types of measurements into a comprehensive strategy. This book looks senior managers in the eye and asks, "Are you ready for the future?" Some executives respond to the challenge of change by tinkering, adding a few nonfinancial metrics to the "instrumentation cockpit" that tells them how their corporate ship is running. Others have spurned Balanced Scorecard because it requires CEOs to accept feedback from all levels of their organizations so they will know if their assumptions remain relevant amidst rapid change. To date, however, more than 300 major organizations have used this system to enhance their performance, and future prospects. Abraham Lincoln once said that the best thing about the future is that it comes only one day at a time. With apologies to Lincoln, we recommend this book to all senior executives and managers - because the future will be here sooner than you think.
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9 of 10 people found the following review helpful
The Balanced Scorecard looks at the important issues of alignment, coordination, and effective implementation. Most business thinkers like to start with the big picture, and end there. As a result, most ideas for going in a new direction are quickly diluted by misunderstanding, falling back on old habits, and lethargy. Since Peter Drucker first popularized the idea of business strategy, there have been vastly more strategies conceived than there have been strategies successfully implemented as a result. Much attention has been paid to devising better strategies in the last four decades, and little to implementing strategies. The big pay-off is in the implementation, and The Balanced Scorecard is one of handful of books that provide important and valuable guidance to explain what needs to be done to successfully execute strategy. You must have more measures, and different measures than the accounting system provides. You also need to link measures and compensation to the key tasks that each person must perform. This book is simply the Rosetta Stone of communicating and managing strategy. The Balanced Scorecard is the beginning of the practical period of maturity in the field of business strategy. Read this book today to enjoy much more prosperity! I also recommend that you read The Fifth Discipline, The Fifth Discipline Handbook, and The Dance of Change to understand more about the context in which you are trying to make positive change. These four books are excellent companions for each other.
The series of books about The Balanced Scorecard includes The Strategy-Focused Organization and Strategy Maps. You'll love all three!
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2 of 2 people found the following review helpful
By A Customer
Professor Kaplan has created a business atlas (better than a road map) to help executives understand how to use measurement to align strategy, planning and performance. The scorecard becomes a common vocabulary, eliminating communication stalls. The measures may be changed as conditions require and focus is provided. Unlike so many business models, THE BALANCED SCORECARD lives and adjusts with the organization. As co-author of THE 2,000 PERCENT SOLUTION, I am acutely aware of the harm done by processes that exist because of tradition (that is the way we do it here), the difficulty in communicating ideas and messages, the importance of measurement and the need to measure so many things to learn what causes change and if progress is being made. I appreciate and applaud Professor Kaplan for developing THE BALANCED SCORECARD and for knowing how to introduce it to executives to encourage acceptance and wide-spread use.
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2 of 2 people found the following review helpful
By A Customer
I have read tomes of quantum theory that were easier to read. I find myself going back over and over single sentences, which are half page long. The idea of putting actual strategy, steps & measurements behind a corporate vision is nothing new. I fear this book was more to guide executives toward consulting services, then to contribute to corporate welfare.
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Most Recent Customer Reviews
1.0 out of 5 stars One Star
The old book - Need the new one
Published 1 month ago by Codeblaster
4.0 out of 5 stars Great book to look at business activity as a whole
A lot of cases helps imagine what authors talk about. Huge amount of performance measures.
The book is inspirational and constitutes a great starting point for future theory... Read more
Published 4 months ago by Piotr
4.0 out of 5 stars Black art? - no longer!
This well written and helpful publication goes a long way to de-mystifying the language of The Balanced Scorecard. Read more
Published 14 months ago by Longshanks
4.0 out of 5 stars Value for Money
The product was sold at an inexpensive price given that I bought it at second-hand.
The packaging was good and the product arrived to me in an undamaged state.
Published 17 months ago by Eva
2.0 out of 5 stars Not High On My Scorecard
I bought this book as I know it has a big fan base, and I have met business leaders who rave about it. Read more
Published 22 months ago by Andy Robins
1.0 out of 5 stars A big disappointment
This book does not deliver on the expectations built by the initial Balanced Scorecard articles. It does very little to clarify and structure the concept and approach to building... Read more
Published on 1 Sep 1999
5.0 out of 5 stars Clean Up Your Implementation of New Directions
Having an idea is one thing. Getting that idea accomplished is another. THE BALANCED SCORECARD is wonderful for helping with the latter. Read more
Published on 14 April 1999
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