In recent years, and perhaps now more than ever, the concept of the Balanced Scorecard (BSC), coined by Kaplan and Norton, has emerged strongly within the field of management, and its business impact is beyond doubt.
Written by: Alfonso López Viñeglá, Professor at the Faculty of Economics of Zaragoza.
There is a rich bibliography on the subject, although, beforehand I must clarify an aspect that, for the sake of a good understanding of the concept, is substantial: the basic distinction between Balanced Scorecard (CMI) and Dashboard (originally from the French term "Tableau de bord").
To address this distinction, it is necessary to examine the evolution of the modern Balanced Scorecard concept. Originally, it was essentially a measurement tool (1992), hence its somewhat inaccurate translation into Spanish as "Cuadro de Mando Integral" (Integrated Management Dashboard). Later, it evolved into a comprehensive strategic implementation tool (1996), and currently, it is useful in what is known as comprehensive strategic management. This trajectory has been based on the increased scope and complexity of the tool's design and implementation, which has also translated into increased value for the company.
Furthermore, the concept of a dashboard is not new; it was already in use in the mid-20th century, and in our neighboring country under the term "Tableau de bord." Essentially, it is a measurement tool, based on the Critical Success Factors methodology developed by Rockart.
The main link between these two tools lies precisely in measurement. The Balanced Scorecard's ultimate goal is the successful implementation of the strategy through a disciplined definition of objectives, effectively related and aligned with it. The dashboard then comes into play, that is, once these objectives or critical factors have been defined. The next step is determining the appropriate indicators for accurately monitoring performance.
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