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Overview

The Sustainability Balanced Scorecard (SBSC) is an evolved performance management tool that integrates sustainability into the traditional Balanced Scorecard framework. It enables companies to incorporate environmental, social, and ethical considerations into their strategic planning and performance measurement. The SBSC guides organizations in setting and monitoring key performance indicators (KPIs) across the three pillars of sustainability, ensuring a comprehensive approach to corporate responsibility. This tool is particularly useful for businesses seeking to align their strategies with sustainable development goals and for those aiming to achieve significant improvements in areas such as product innovation, process optimization, and customer satisfaction.

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Dimensions

Resource type: The SBSC is a strategic management tool that provides a framework for integrating sustainability into corporate strategy and performance measurement.

• Tags: framework, tool

Objective: The main goal of the SBSC is to align a company's strategic objectives with sustainability goals and to translate these into measurable performance indicators.

• Tags: align, assess

Target audience: This resource is designed for decision-makers within organizations who are responsible for strategy development and performance management.

• Tags: practitioners, corporations

Sustainability focus: The SBSC addresses all three pillars of sustainability, with a particular emphasis on integrating these considerations into the core strategic planning of an organization.

• Tags: environmental-sustainability, social-sustainability, economic-sustainability

Innovation type: By incorporating sustainability into various aspects of business strategy, the SBSC can support innovation across products, processes, and business models.

• Tags: product-innovation, process-innovation, business-model-innovation

Entrepreneurship stage: Although the SBSC is not intended to be used in entrepreneurial contexts, it can be applicable across various stages of entrepreneurship, especially during the design, development, and implementation phases where strategic alignment is crucial.

• Tags: design, development, implementation

Scope of relevance: There is no explicit mention of the scope for SBSC, but it can be applied globally and is adaptable to regional, national, or local contexts depending on the strategic objectives of the organization.

• Tags: global, regional, national, local

Methodological approach: The SBSC draws on both qualitative and quantitative approaches to performance measurement and management.

• Tags: qualitative-research, quantitative-research

Skill development: Implementing the SBSC requires skills in leadership, systems thinking, and holistic thinking to effectively integrate sustainability into business strategy.

• Tags: leadership-and-management, systems-thinking, holistic-thinking

Source and credibility: The SBSC is grounded in the established Balanced Scorecard methodology and adapted to include sustainability considerations. It is developed by researchers embedded in German university ecosystem.

• Tags: recognized-experts, academic-institutions, reputable-industry-sources

Prerequisites and requirements: Utilizing the SBSC may require a certain level of strategic management knowledge and familiarity with sustainability concepts.

• Tags: intermediate-level, specific-educational-background

Collaboration level: The SBSC encourages collaboration among various departments within an organization to ensure that sustainability is integrated across all functions.

• Tags: team, cross-team-collaboration

More information can be found at Threebility | Tools and Methods for Sustainable Innovation

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Resources