Focusing profit requires focusing the strategy that drives the economic engine of the organization. Strategy is a critical concept for success, and in too many organizations it is not defined, let alone executed with precision. We have seen many claims by experts espousing their strategic approach to lean strategies, Six Sigma strategy, the Theory of Constraints, and activity-based management. None of these tools work unless they are implemented and the organization is capable of executing the selected action steps toward the goal. The void created by traditional cost measurement led to nonfinancial performance measures. The Balanced Scorecard by Robert S. Kaplan and David P. Norton, written in the mid-1990s, brought visibility to this movement and helped many companies fill the void left by traditional cost management and measurement. This tool showed how to create a scorecard containing financial and nonfinancial measurements and ways to build a feedback and learning system. This helped companies translate strategy into action. There was, and still is, work to be done to help organizations understand and embrace the balanced scorecard tools to achieve effective strategic focus.

There are thousands of companies that find that the ability to execute strategy quickly and effectively is imperative for their success and survival. The concept of balanced scorecards was described in Chapter 7 to provide the groundwork for creating a baseline level of understanding. This foundation will be expanded to offer further insight on ways to apply and use this tool. I identify it is one of the