The Balanced Scorecard management system has been around for quite some time -- born in 1992, it's now officially a teenager. And while 16 years is still relatively young in human years, it's a few lifetimes in management concept years. Remember the other "great ideas" of the early 1990s? Like reengineering?

The Balanced Scorecard has stood the test of time, and its stature and use has increased over the past 16 years. This is in no small part due to the continual research and publishing by Drs. Kaplan and Norton, the fathers of the Balanced Scorecard concept. They have just released their fifth book on the Balanced Scorecard concept, entitled The Execution Premium.

In the Execution Premium, Kaplan and Norton outline their "unified field theory" of management excellence -- a six stage process that enables organizations to rapidly and effectively implement strategy. The six stages (in a closed loop process) are:

1. Develop the Strategy. Define your mission, vision, and values; perform strategic analysis and formulate your strategy.
2. Plan the Strategy. Develop your strategy map and themes, measures, targets, and initiatives. Develop your funding strategy.
3. Align the Organization. Align business units, support units, and employees so everyone's on the same strategy page.
4. Plan Operations. Identify and improve key processes, sales planning, budgeting, and resource planning.
5. Monitor and Learn. Review your strategy through strategy and operational reviews. Identify areas for improvement.
6. Test and Adapt. Perform profitability analysis, develop correlations between strategic objectives, and review emerging strategies.

As suggested above, the Execution Premium model provides, for the first time, a holistic and complete model for managing with the Balanced Scorecard. It integrates the strategy development, planning and budgeting, and performance management processes seamlessly. For anyone interested in improving their organization's management capacity, it's a must read.

• Strategic Growth and New Hires (February 11, 2011)