Editing Balanced scorecard (section)

=== Second generation ===

In the mid-1990s, an improved design method emerged.<ref name=Olve_1999 /> In the new method, measures are selected based on a set of "strategic objectives" plotted on a "strategic linkage model" or "[[strategy map]]". With this modified approach, the strategic objectives are distributed across the four measurement perspectives, so as to "connect the dots" to form a visual presentation of strategy and measures.<ref name=Kaplan_Norton_CMR_1996>{{cite journal|last=Kaplan|first=Robert S.|author2=Norton D. P. |s2cid=15409777|title=Linking the Balanced Scorecard to Strategy|journal=California Management Review|year=1996|volume=39|issue=1|pages=53–79|doi=10.2307/41165876|jstor=41165876}}</ref>

In this modified version of balanced scorecard design, managers select a few strategic objectives within each of the perspectives, and then define the cause-effect chain among these objectives by drawing links between them to create a "strategic linkage model". A balanced scorecard of strategic performance measures is then derived directly by selecting one or two measures for each strategic objective.<ref name=Lawrie_Cobbold_2004 /> This type of approach provides greater contextual justification for the measures chosen, and is generally easier for managers to work through. This style of balanced scorecard has been commonly used since 1996 or so: it is significantly different in approach to the methods originally proposed, and so can be thought of as representing the "2nd generation" of design approach adopted for the balanced scorecard since its introduction.