Balanced Scorecard Diagnostics

PAUL R. NIVEN is President of the Senalosa Group, a consulting firm exclusively dedicated to helping businesses reach breakthrough results using the Balanced Scorecard. In addition to publishing articles on performance management in Journal of Cost Management and Journal of Strategic Performance Measurement, he is the author of the highly successful books, Balanced Scorecard Step-by-Step: Maximizing Performance and Maintaining Results and Balanced Scorecard Step-by-Step for Government and Nonprofit Agencies, both published by Wiley. He may be reached through his Web site at senalosa.com.

• Preface xiAcknowledgments xviiChapter 1 The Current State of the Balanced Scorecard 1The Road Ahead 1Why the Balanced Scorecard Has Risen to Prominence 2The Balanced Scorecard 12Is the Balanced Scorecard Here to Stay? 17Chapter 2 First Things First 23Why Balanced Scorecard and Why Now? 23Who Owns the Balanced Scorecard?: Exploring Executive Sponsorship 30Self-Assessment Questions 38Chapter 3 Before You Measure 41Your Balanced Scorecard Team 41Balanced Scorecard Training 48Getting the Word Out: Communication Planning 50Terminology and the Balanced Scorecard 55Your Balanced Scorecard Implementation Plan 57Chapter 4 Strategy Maps 63Developing the Strategy Map 65Personalizing Your Strategy Map 86Chapter 5 Measures, Targets, and Initiatives 93Performance Measures 93Adding Meaning to Measurement through the Use of Targets 110Mapping and Prioritizing Organizational Initiatives 116Chapter 6 Cascading the Balanced Scorecard to Drive Organizational Alignment 127Developing Implementation Principles for Cascading Success 129Understanding the Highest-Level Balanced Scorecard 130Cascading Is Based on Influence 131Reviewing Cascaded Balanced Scorecards 135Chapter 7 Key Balanced Scorecard Process Linkages: Budgeting, Compensation, and Corporate Governance 139Strategic Resource Allocation:The Balanced Scorecard and Budgeting 139Linking Pay with Performance:The Balanced Scorecard and Compensation 147The Balanced Scorecard and Corporate Governance 155Chapter 8 Sharing Balanced Scorecard Results: Reporting and Strategy-Centered Management Meetings 165Reporting Balanced Scorecard Results 166The Strategy-Centered Management Meeting 171Appendix 8A: Choosing Balanced Scorecard Software 176Chapter 9 Building the Balanced Scorecard at Aliant, Inc. 185Pouring a Foundation for Balanced Scorecard Success 186Aliant’s Strategy Map, Performance Measures, Targets, and Initiatives 191Cascading the Balanced Scorecard to Build Organizational Alignment 195Reporting Balanced Scorecard Results 197Everybody Wins: Linking the Balanced Scorecard to Incentive Compensation 198Aliant’s Balanced Scorecard Results 200Index 201