Updating the Balanced Scorecard for Triple Bottom Line Strategies

25 Pages Posted: 3 Sep 2020

Date Written: August 28, 2020


Many companies are now attempting to achieve triple bottom line performance on financial, environmental and societal metrics. Successful strategies for such performance, however, generally require new relationships among multiple players in multiple sectors across a company’s supply chain for products and talent. The Balanced Scorecard (BSC), originally developed to describe and implement a single organization’s strategy, needs to be adapted to reflect such multi-stakeholder strategies for triple bottom line performance. The Financial perspective is replaced by “Outcomes” to encompass financial, environmental, and metrics; Customer becomes “Stakeholders” to reflect the interests of the multiple participants in the ecosystem; and Learning & Growth becomes “Enablers” to include the new capabilities for collaboration and alignment. The paper motivates and illustrates the new framework with examples from innovative agribusiness ecosystems.

Suggested Citation

Kaplan, Robert S. and McMillan, David, Updating the Balanced Scorecard for Triple Bottom Line Strategies (August 28, 2020). Harvard Business School Accounting & Management Unit Working Paper No. 21-028, Available at SSRN: https://ssrn.com/abstract=3682788 or http://dx.doi.org/10.2139/ssrn.3682788

Robert S. Kaplan (Contact Author)

Harvard Business School ( email )

Soldiers Field
Accounting & Control
Boston, MA 02163
United States
617-495-6150 (Phone)
617-496-7363 (Fax)

David McMillan

Palladium ( email )

1331 Pennsylvania Avenue NW, #600
Washington, DC 20004

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