Modernizing the Balanced Scorecard
We covered Kaplan and Norton’s (1996) Balanced Scorecard in my ISAT 654 (Advanced Technology Management) class at JMU a couple weeks ago. Appropriately, the students recognized that the research into balanced metrics and the strategy maps underlying the method is nearly 20 years old. Hasn’t the Balanced Scorecard been modernized since then, they asked, to reflect changing concerns in a changing world – especially social, political and environmental concerns? After all, sustainability and social responsibility are major concerns these days, and any scorecard that’s worth its salt should incorporate these considerations, they argued.
Here are a few “modernizations” I found that might be of interest:
- Moeller and Schaltegger (2005): They propose a mechanism to integrate the environmental and economic indicators for sustainability into a balanced scorecard.
- Sidiropolous et al. (2004): They propose a concept to adapt the BSC to include measures that can be captured from typical Environmental Management Systems, e.g. ISO 14001 and EMAS.
- Social Responsibility Key Performance Indicators (KPIs) and potential use in a BSC
- The Balanced Scorecard and Corporate Social Responsibility: Aligning Values for Profit
Möller, A. & Schaltegger, S., (2005). The Sustainability Balanced Scorecard as a Framework for Eco-Efficiency Analysis, Journal of Industrial Ecology, 9(4), 73-83.
Sidiropolous, M., Mouzakitis, Y., Adamides, E., & Goutsos, S. (2004). Applying Sustainable Indicators to Corporate Strategy: The Eco-Balanced Scorecard. Environmental Research, Engineering & Management, 1(27), 28-33.