greetings !
I am ANUSHA MBA doing my project in BALANCED SCORE CARD AND AN EXTENDED APPLICATION OF PCMM (PEOPLE CAPABILITY MATUTRITY MODEL ) as i am really confused and not having clear cut idea about how pcmm helps in attaining the balanced score card
it will be really helpfule for me if I can get the inevitable ideas and suggestions
with regards,

From India, Hyderabad
Management Consultant
Ekta Sharma
Consultant / Professor



Please find the broad definition of BS AND PCMM.

You will see that they are separate business tools.

But a linkage can be established , once the corporate

strategy is very clear and well defined.

Balanced Scorecard?

The Balanced Scorecard is a powerful framework to help organizations rapidly implement strategy by translating the vision and strategy into a set of operational objectives that can drive behavior, and therefore, performance. Strategy-driven performance measures provide the essential feedback mechanism required to dynamically adjust and refine the organization's strategy over time. The Balanced Scorecard concept is built upon the premise that what is measured is what motivates organizational stakeholders to act. Ultimately all of the organization's activities, resources, and initiatives should be aligned to the strategy. The Balanced Scorecard achieves this goal by explicitly defining the cause and effect relationships between objectives, measures, and initiatives across each perspective and down through all levels of the organization. Developing a Balanced Scorecard is the first step in creating a Strategy-Focused Organization.

BALANCE SCORECARD is not a measurement, but a tool.

-measure, analyze and manage financial and operational performance.

-translate strategic and tactical corporate objectives into individual performance measures.

-link performance results with the processes that have driven those results.

-align strategy with tactical operations.

-leverage the value of all other IT applications.

What are the benefits of the Balanced Scorecard?

Organizations benefit from the use of the Balanced Scorecard in the following ways:

Clarify the vision throughout the organization

Gain consensus and ownership by the executive team

Provide a framework to align the organization

Provide structure for multiple initiatives

Drive the capital and resource allocation process

Integrate the strategic management process across the organization

Focus teams and individuals on strategic priorities


What are the applications of the Balanced Scorecard?

Since the concept was introduced in 1992, the Balanced Scorecard framework has been adapted to meet a variety of organizational needs. Common applications include:

Rapid strategy implementation

Post merger integration

Joint venture/Alliance management

IT strategy

Human Resource strategy and compensation alignment

Initiative Management and prioritization

Enterprise transformation/change management diagnostic

Communication with customers, suppliers, and shareholders

Supplier management

Capital budgeting/resource allocation and prioritization


TOP management develops the strategy and the front line

makes it happen.

Employees must have a firm understanding of how their

activities and attitudes contribute to the success of the

overall organization.


1.communication and education programs for employees.

2.individual and teams objectives are linked to the strategy.

3.incentives/ rewards linked to the objectives/ strategy.

The motivation for the PCMM is to radically improve the ability of software organizations to attract, develop, motivate, organize, and retain the talent needed to steadily improve software development capability.

The strategic objectives pursued in the PCMM are to:

improve the capability of software organizations by increasing the capability of their staff,

ensure that software development capability is an attribute of the organization rather than of a few individuals,

align the motivation of the staff with those of the organization, and

retain assets (i.e., people with extensive skills and capabilities) within the organization.

The PCMM includes practices in the areas of:

staffing (includes recruiting, selection and planning)

managing performance



work environment

career development

organizational and individual competence

mentoring and coaching

team and culture development




From India, Mumbai

Check section 6.3 of the People CMM book. It gives an example of how a US/Indian software development organization has integrated People CMM into supporting their Balanced Scorecard method.
Bill Hefley

Ekta Sharma

Balanced Scorecard
  • drives the success of your organization forward by making your strategy visible and compelling throughout the company.
Clarity of vision leads all individuals in the organization to focus their energies on truly value-added efforts, achieving remarkable results.
The Balanced Scorecard, most eloquently outlined by Robert Kaplan and David Norton, is a way of taking your strategic vision of your organization's path to success and mapping it to a dashboard - a manageable set of metrics that tell you if you are on track. Three key elements are:
  • Viewing the organization from different perspectives:
Adopting a balance of different ways of measuring:
  • Setting quantified, measurable goals.

From India, Ahmadabad

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