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Evolution of the Balanced Scorecard

The balanced scorecard (BSC) has evolved from simple metrics and performance reporting into a strategic planning and management system. It is no longer a passive reporting document which shows pretty pictures. It has transformed into a framework that not only provides performance measurements but helps analysts identify gaps and continual service improvement programs. It enables our senior staff to truly execute their strategic goals and objectives. Dr. R. Kaplan & David Norton did extensive research and documentation on this framework in the early 1990’s. In Kaplan & Norton’s writing, the four steps required to design a BSC are as follows: Translating the vision into operational goals; Communicating the vision and link it to individual performance; Business planning; index setting Feedback and learning, and adjusting the strategy accordingly. In the late 1990’s an updated version on the traditional balanced scorecard was introduced called the Third Generation Balanced S