Building Performance Measurement Systems with the Balanced Scorecard Approach.pdf

April 1, 2002
Building Performance Measurement
Systems with the
Balanced Scorecard Approach
Toru MORISAWA
NRI Papers No. 45
April 1, 2002
Building Performance Measurement Systems
with the Balanced Scorecard Approach
Toru MORISAWA
I Using the Balanced Scorecard to Effectively Achieve Value-Based Management
1 What is the Balanced Scorecard (BSC)?
2 The Essence of the BSC
3 ration State for BSC in panies
II Recent BSC Evolution
1 Transition from the First to the Third Generation
2 What is a Strategy Map?
III Changing the Performance Measurement Systems: The Kansai Electric Power
Example
1 Profile of pany and anization
2 Background to the Implementation of the Performance Linked Contract
3 Evaluation by Outside Consultants
4 Building a Strategy Map
5 Results of Reform and Future Issues
IV Requirements for essfully Reforming Performance Measurement Systems
Using the BSC
1 Selecting a Solution by Understanding the Total Picture of Management
Issues
mitment by Management to Realize Reform
3 A Cross-function Team Consisting of Planning and Personnel Functions
4 Expectations for Future Reform at Kansai Electric Power
he Balanced Scorecard (BSC) methodology e in for increased attention and grow-
T ing popularity among panies. Indeed, the fact that it has been applied to
reforms undertaken by a large number panies during the past several years has con-
tributed to the rapid development of the BSC concept itself. For example, Kansai Electric Power
Co., Inc. has been implementing a PDCA (Plan, Do, Check and Action) management cycle to
increase the value of pany through a system of what is called a “Performance Linked
Contract” between division managers and senior officials covering a diverse set of performance
objectives. Concurrently, pany is also promoting reform by changing anizational
climate through the joint efforts of division managers and top executives. This example by
Kansai Electric