Aligning Capital Investment Decisions with the Balanced Scorecard

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The Balanced Scorecard (BSC) has evolved from a measurement tool to a strategic management tool used by thousands of organizations. The Balanced Scorecard has proven to be a powerful tool in translating strategy into action in the for-profit sector and has recently been adopted by increasing numbers of not-for-profit organizations as well. Bridgeport Hospital, part of the Yale-New Haven Health System, has been using the BSC for over three years to effectively translate strategy into day-to-day operations. The hospital has also linked the capital budgeting process to the BSC to ensure that resource allocation is aligned with strategic imperatives.