Robert Kaplan and David Norton first proposed a ‘Balanced Score Card’ to measure all KRAs – Key Result Areas – where it was vital that an organisation performed well if it was to achieve its longer term aims – otherwise, its very survival could be in jeopardy
However, they gave no clear steer on the precise measures needed
To perform well, and keep all their stakeholders happy, managers need a set of cardinal measures which cover all their KRAs
And those stakeholders are many and varied viz:
External stakeholders – the end-customers, investors, suppliers, local communities – they each have a vested interest in the organisation doing well
Internal stakeholders – the managers and employees – they want the organisation to prosper, to enjoy working there and to share in its success
Hence the profusion of measures for managers, but few for them to manage well
