In the past, managing an organizations IT capability as if it were merely a cost center was good enough. However, over the last decade Information Technology has become an integral part of business operations and is now a requirement for successful business strategies and for companies to remain competitive. Today it has become imperative to align IT operations and goals with business strategy.
The balanced scorecard (BSC) is a well-known and widely used business strategy and performance management tool, developed by Norton and Kaplan from Harvard Business School in the early 1990’s. This scorecard was initially designed as a performance measurement framework, but has since evolved into performance management - a strategy scorecard helping translate business strategy into operational terms.
IThe traditional BSC can be tailored to suite an IT business unit focus by tweaking the perspectives. An important consideration is that the IT-BCS, along with the perspectives, objectives and goals, should always map back to the business scorecard for traceability and alignment.
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