Doi: 10. 1016/S1751-3243(07)03003-9 Conceptual Foundations of the Balanced Scorecard
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| 3. The Strategy Management System My Harvard Business School colleague, Robert Simons, developed the levers of control framework ( Simons, ab ) at the same time that Norton and I were developing the balanced scorecard. Simons identifi ed several types of management control systems that managers use to motivate, monitor and manage their strategies. The control systems included belief systems (mission, vision and values, boundary systems, internal control systems, diagnostic systems and interactive systems. As described at the beginning of this chapter, Norton and I originally envisioned the balanced scorecard as an enhanced performance measurement system, labelled by Simons as a diagnostic system. Our vision for the BSC was for managers to defi ne and track performance among multiple fi nancial and non nancial measures that were considered important for company success. Several senior executives soon taught us that the balanced scorecard could operate in afar more powerful manner than its use as a management reporting and performance monitoring system. For example, Larry Brady, then President of the FMC Corporation, stated 8 I think that it’s important for companies not to approach the scorecard as the latest fad … . You hear about a good idea, several people on corporate staff work on it, probably with some expensive outside consultants, and you put in a system that’s a bit different (incremental) from what existed before. Supply Produce Distribute Manage risk Download 192.17 Kb. Share with your friends:
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