Publications
Publications
- September 1996 (Revised September 1999)
- HBS Case Collection
Mobil USM&R (A): Linking the Balanced Scorecard
By: Robert S. Kaplan
Abstract
The CEO of the marketing and refining division of a major oil company is in the midst of implementing a profit turnaround. He transforms the strongly centralized, functionally-organized division into 17 independent business units and 14 internal service companies. The division also launches a new, market-segmented strategy aimed at high-end buyers. The CEO recognizes, however, that the new organization and strategy require a new measurement system. He turns to the Balanced Scorecard (BSC) because of its ability to link measurement to strategy, and to help the new profit-center managers develop customized strategies for their local responsibilities. The case describes the development of the initial divisional BSC, the linkage of the divisional BSC to independent business unit and internal service company BSCs, and linkage of the BSC to managers' compensation. Concludes with the senior executives reflecting on how they are using the BSC in their management processes.
Keywords
Organizational Change and Adaptation; Measurement and Metrics; Management Practices and Processes; Organizational Design; Balanced Scorecard; Corporate Strategy; Mining Industry; Energy Industry
Citation
Kaplan, Robert S. "Mobil USM&R (A): Linking the Balanced Scorecard." Harvard Business School Case 197-025, September 1996. (Revised September 1999.)
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