Leveraging Knowledge Management with the Balanced Scorecard

In a rapidly changing environment, innovative firms are increasingly using the Balanced Scorecard (BSC) to identify and communicate key factors that drive future value. Knowledge is described as the only meaningful resource in the Knowledge Economy (KE). Although there is recognition that knowledge is a key business asset, many organizations still do not understand the implications of Knowledge Management (KM). The key is to understand what makes knowledge valuable and, in particular, how knowledge creates wealth in a knowledge-driven economy. KM deals with the production, application, and distribution of knowledge within and between organizations. Such intellectual assets are always constituted through practices and undertakings in an everyday work life setting. This paper seeks to examine how the BSC represents a relevant tool to KM, bridging the gap between strategic objectives set at the senior level within an organization and their operational execution.