Knowledge management process or activities have been applied in many ways in creating a balanced Scorecard (BSC)? Some are better, more balanced than others.

In that aspect, you may find the following paper interesting. It deals with formalizing a knowledge management process in an enterprise.

Article A Systematic Approach of Virtual Enterprising Through Knowle...

All of the KM activities fall within the BSC domain particularly when it comes to innovation and learning.

Another perspective on how to implement (operationalize) the Balanced Scorecard can be found here-

http://www.tphlink.com/uploads/1/1/4/0/11401949/guide_to_implementing_the_bsc.pdf

Brian and Deborah sum it up very well - any KM activities can be relevant. It all depends on what the top management of the organization see as most important in evaluating the effectiveness of the implementation of their strategy. Especially true in public sector organizations, with the BSC emphasis on non-financial measures.

When we did a big project on KM strategy (admittedly 10 years ago now) we found that KM activities were generally seen as an enabler to the measures in the BSC, rather than something to measure (at strategic level) in themselves. The assumption was that effective KM would influence the overall performance measures. The one exception to this was if Intellectual Capital mattered to your organization; then it would be a BSC component in itself.

Brian, Deborah and John, thank you all for your contribution to the topic.

John, do you have any publication related to your findings?

Aniko, There were several publications from the project but I can't post the final report here. The one that covered performance measures in most detail was the attached working paper (we couldn't get a journal to publish it in that form!).

You can find many different definitions of KM but, for me, the basic question about it could be "Where are the capabilities of your company and where should they be?" Technology, Organizational Processes, People...?

Once you have a clear map of your company in these terms, BSC can be read as a piping system to tell you how near you are from your KM model. The big BSC blocks by themselves don't do that but you can find inside them variables to get this effect.

Knowledge utilization and knowledge internalization are the two key components that can be considered for making strategic plans for any organization using BSC. They (all the KM activities) generally come under Learning and Growth dimension, but depending on the type of organization they may be considered as part of customer relationship management and business process improvement activities. (Integrating all four perspectives of BSC differs with the type of strategic objectives of the organization & its needs. If the organization is people and process focused then Learning and Growth dimension will be playing a predominant role in designing the strategic plans where obviously KM is a key activity.

See the linked pieces for research on extending the BSC to include KM and much else.

http://www.cutter.com/offers/adaptivescore.html

http://www.csin-rcid.ca/downloads/csin_conf_henk_hadders.pdf

http://www.sustainablebrands.com/news_and_views/new-metrics/balanced-scorecard-innovation-sustainability-context-adaptive-quadruple

http://connection.ebscohost.com/c/articles/48947268/measuring-organizational-sustainability-performance-adaptive-quadruple-bottom-line-scorecard

Knowledge creation, knowledge loss, knowledge accumulation, knowledge sharing, knowledge utilization, and knowledge internalization: I would say that all of them appear and are part of the 4 perspectives. One gotta know thr internal processes and have them continuously improved.

Also, customer needs are to be known and such information must be spreaded along the whole organization.Knowing the Market dynamics and how it affects $$$$ is a critical success fator.

Therefore, one can say there is no BSC without KM.

The BSC and knowledge management are connected in 5 key aspects of the administrative process: planning, organization, integration, direction and evaluation, these stages are strongly linked with 4 BSC perspectives.

Attached please find an article which might be interisting. More information in my ResearchGate.

https://www.researchgate.net/publication/308427094_An_Empirical_Study_of_the_Balanced_Scorecard_Model_Evidence_from_Bangladesh

Article An Empirical Study of the Balanced Scorecard Model: Evidence...

Dear Anikó,

The answer to your question partly depends on which strategic position knowledge has in your organisation. On the first glance, knowledge would probably be related to the Innovation and Learning Perspective. However, know-your-customer is, to be sure, a very important topic. Consequently, knowledge can become a feature of the Customer Perspective, too. Finally, the Internal Business Perspective and the Financial Perspective can only be meaningfully monitored by the board, if the directors possess the knowledge necessary and if the information asymmetry between them and the executives is reduced. Therefore, knowledge appears to be an overall topic for the Balanced Scorecard.

For a general overview about the application of the Balanced Scorecard please feel free to refer to my research paper: "The Balanced Scorecard and Beyond – Applying Theories of Performance Measurement, Employment and Rewards in Management Accounting Education".  In the paper you can find further references. It was published in the International Research Journal of Management Sciences 4 (7), pp. 483-491 and thus can be used for referencing.

Paul

Article The Balanced Scorecard and Beyond – Applying Theories of Per...

See: http://www.adaptivemetricscenter.com/media/BSCdevelopmentsandchallenges.pdf

and: 

http://www.cutter.com/offers/adaptivescore.html

See also; Adaptive Quadruple Bottom Line Scorcard.