The development of the Balanced Scorecard
can be broken down into three distinct generations
(Cobbold and Lawrie, 2002). The 1st generation
Balanced Scorecard was initially described as a
simple one with four perspectives. In this generation,
Kaplan and Norton primarily focused on the selection
of a limited number of measures in each perspective
(Kaplan and Norton, 1992). The concept of strategic
objectives and causality was highlighted in the 2nd
generation Balanced Scorecard. In this generation,
the Balanced Scorecard was described as an
element of a strategic management system (Kaplan
and Norton, 1996). The concept of the ùstrategy
mapû was also introduced in this generation (Kaplan
and Norton, 2001). The concept of the destination
statement was introduced in the 3rd generation
Balanced Scorecard. The destination statement
describes the consequences of implementing the
strategic objectives at a particular future date
(Cobbold and Lawrie, 2002). It assists in the process
of selecting strategic objectives, the design of
causality between those objectives, and the setting
of the targets.