Metaphors matter. With so many complex concepts whirling around us, it is no surprise that we frequently grasp for simplified metaphors to help in our communication and understanding. For example, when computing evolved beyond the basic green screen, we began to think of our monitor as a “desktop” and it helped us understand that we could have multiple documents or spreadsheets open, with one laying on top of the other. We think of electronic bandwidth as “pipes” and refer to sophisticated technical infrastructure as “plumbing.” Usually these metaphors help streamline learning and allow us to communicate without getting bogged down in the detailed reality. Sometimes, however, a metaphor can become an obstacle to the effective understanding of a concept. One common metaphor for the Balanced Scorecard helps to perpetuate a sub-optimal understanding of this powerful approach to strategic management. In striving to communicate the concept of the Balanced Scorecard, many articles, instructors and consultants have used the following example:

“Imagine if you were trying to fly a plane but you only had one gauge—just a speedometer. You’d be in a lot of trouble. To fly a plane, you need a cockpit that has multiple instruments, including an altimeter, a compass, and a fuel gauge. Most businesses are like planes flying with one instrument—they only have financial measures. In contrast, the Balanced Scorecard provides measures from multiple perspectives (typically financial, customer, internal process, and learning & growth). This balanced set of measures will allow the executives to effectively and safely fly their ‘plane’. The Balanced Scorecard gives these business pilots a ‘management cockpit’ with the full set of gauges needed to stay on top of their business in a dynamic environment.”

The full set of gauges in an airplane cockpit is intended to bring together a variety of key indicators or measurements to deliver information to the pilot. If the Balanced Scorecard is viewed in the same way, it exists as a convenient and consolidated way for executives to monitor the performance of their organization. While there is some validity to this metaphor (along with genuine business value), it unfortunately perpetuates a very limiting misconception about the power of the Balanced Scorecard approach. This view looks almost exclusively at the flow of information from front lines of an organization up to the top management team.

Figure 1 – The flow of Information with the “Cockpit” or “Gauges” metaphor