The Balanced Scorecard (BSc)

A tool for "translating strategy into action" and managing the whole value
creation of the enterprise.

This framework was developed by Robert Kaplan and David Norton in the early 1990s in
recognition of the fact that there are more drivers of success than managers typically
refer to in setting strategy and managing performance. Typically managers refer to
financial success metrics and little else. The original BSc incorporates three additional
perspectives into account, as shown below.

Perspectives of the Balanced Scorecard

From Kaplan & Norton, The Balanced Scorecard: Translating Strategy into Action, HBS Press, 1996.
Customer To achieve our vision, how should we appear to our customers?
Learning and Growth To achieve our vision, how will we sustain our ability to change
and improve?
Internal Business Processe To satisfy our shareholders and customers, at what business
processes must we excel?
Financial To succeed financially, how should we appear to our shareholders?

Perspectives of the modified Balanced Scorecard

Based on New Profit Inc.'s version.
Social Impact Perspective To deliver on our social change mission, what impact must our
programs demonstrate?
Customer How do we create value for our customers?
Learning and Growth How can our organization continue to learn and improve?
Internal Business Processe To satisfy our shareholders and customers, at what business
processes must we excel?
Financial If we succeed, how will we look to our shareholders?

The BSc is typically used to report on 12-15 key success measures, Process and Performance.
Process Measurements tell internal and external participants where to take action to deliver
better outcomes. Performance Measurements keep "eyes on the prize" and provide verifiable
proof of performance. Using both clarifies to key stakeholders their role in the process for
delivering outcomes.

New Profit Inc. develops a Balanced Scorecard system with each of its grantees every year over
the life of the funding relationship. Their system includes the following elements:
Building a Strategy Map
Building a Balanced Scorecard
Developing an Implementation Plan including quarterly reporting process
Refreshing and updating the Strategy Map and Scorecard annually.
In addition, NPI conducts annual satisfaction survey of its portfolio organization to improve fund
performance.

For more information on the Balanced Scorecard, refer to the Balanced Scorecard Collaborative,
Inc. www.balancedscorecard.com.
For more information on New Profit Inc., refer to www.newprofit.com.

NVS Workshop on Social Impact Assessment 10/09/03. www.svtconsulting.com

 Strategy Map Template
Source: the Balanced Scorecard

Organization: Name
Vision: What do we want to achieve?
Mission: What are we going to do to realize this?

Social Impact Overall Goal: Overall Goal: Overall Goal:

Metric: Metric: Metric:

Metric: Metric: Metric:
Metric: Metric: Metric:
Metric: Metric: Metric:

Customer/ Overall Goal: Overall Goal: Overall Goal:

Constituent
Perspective

Metric: Metric: Metric:

Metric: Metric: Metric:
Metric: Metric: Metric:
Metric: Metric: Metric:

Internal Overall Goal: Overall Goal: Overall Goal:

Operations
(Key Levers)

Metric: Metric: Metric:

Metric: Metric: Metric:
Metric: Metric: Metric:
Metric: Metric: Metric:

Financial Overall Goal: Overall Goal: Overall Goal:

Perspective
Metric: Metric: Metric:
Metric: Metric: Metric:
Metric: Metric: Metric:
Metric: Metric: Metric:
Build a Sustainable Financial Base

Organizational Overall Goal: Overall Goal: Overall Goal:

Capacity
Perspective Metric: Metric: Metric:
Metric: Metric: Metric:
Metric: Metric: Metric:
Metric: Metric: Metric:
Build a Thriving and Diverse Organization
Social-Impact SROI Workshop SVT Group : : www.svtgroup.net
March 2007
 Scorecard Template Organization:
Source: the Balanced Scorecard
Vision:
Mission:

Priority this Perspective Objectives Measures Responsible Q1 Goal Q2 Goal Q3 Goal Q4 Goal Year Goals
Quarter
Social
Impact

Constituent/
Customer

Internal
Operations

Financial

Organiza-
tional
Capacity

Social-Impact SROI Workshop SVT Group : : www.svtgroup.net

March 2007