Introduction to the Balanced Scorecard and Performance Measurement Systems 1 Chapter 1 Introduction to the Balanced Scorecard and Performance Measurement Systems by Christian C. Johnson From the beginning‚ it is important to understand why measuring an organization’s performance is both necessary and vital. An organization operating without a performance measurement system is like an airplane flying without a compass‚ a Formula One race car driver guiding his car blindfolded‚ or a CEO
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I – Importance of the Balanced Scorecard The Kaplan and Norton article builds upon the concept of Balanced Scorecard as introduced by Kaplan and Atkinson. The core concept highlighted by both articles is the elemental role of the Balanced Scorecard in the information age. Pure financial measures of performance may have been adequate in the industrial era where central to the organizational identity were easily measurable tangible assets such as plant and machinery. However‚ in the information age
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Balanced Scorecard The balanced scorecard is a strategic planning methodology used by corporate executives to balance financial concerns (stockholders)‚ customer concerns‚ process concerns and innovation concerns during day-to-day operations. Since each of these four concerns feed the top level strategic vision of a corporation‚ this balance is required to ensure that daily operations are aligned with the long-term strategic vision of the corporation. What Is a Balanced Scorecard? The balanced
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10-20 Creating Balanced Scorecards that Support Different Strategies [L05] The Midwest Consulting Group (MCG) helps companies build balanced scorecards. As part of its marketing efforts‚ MCG conducts an annual balanced scorecard workshop for prospective clients. As MDG’S newest employee‚ your boss has asked you to participate in this year’s workshop by explaining to attendees how a company’s strategy determines the measures that are appropriate for its balanced scorecard. Your boss has provided
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business assets Balanced Scorecard Overview Douglas Scherer June 17‚ 2002 Introduction Without metrics‚ management can be a nebulous if not impossible exercise. How can we tell if we have met our goals if we don ’t know what our goals are? How do we know if our business strategies are effective if they have not been well defined? The balanced scorecard as documented by Robert S. Kaplan and David P. Norton in the Harvard Business Review article The Balanced Scorecard - Measures that Drive Performance1
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A Balanced Scorecard One of the most important things to do in order to run a successful business is to know how your business is faring at all times. “In assessing performance‚ organizations should not rely on any single measure but rather on a composite set of measures that take into account the various stakeholders of the firm‚” (University of Phoenix‚ 2005). These measures are represented on what is called a balanced scorecard. The information shown on the balanced scorecard is comprised of
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effective. According to the Evans and Lindsey book the purpose of a balanced scorecard is to “translate strategy into measures that uniquely communicate your vision to the organization. The scorecard should consist of four perspectives: financial‚ internal‚ customer‚ and innovation and learning. These perspectives provide focus to the measurement and ensure that the organization captures the information that they need. The scorecard also organized the measures into leading and lagging. Lagging measures
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first store in Dublin‚ Ohio in 1991. Years later‚ DSW was bought by another company‚ in 2008. In 2005‚ the company went public selling shares at $19.00 per share gaining $16.2 million dollars. In May 2011‚ DSW merged with RVI. The Scorecard DSW’s balance scorecard is a performance management tool that is developed to strategically to improve and manage DSW’s retail stores and website of shoes and accessories through the following: · Pricing · Customer sales · Increase
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before it was spoiled. The project’s objective was to increase the company’s profitability by reducing cycle times and operation costs while increasing customer satisfaction. The CIL project was followed by the implementation project of a Balanced scorecard (BSC) to maintain CIL’s standards and to focus on continuous improvement‚ learning to enhance performance and rewarding employees for increased productivity. The traditional cost based performance measures which were developed from the benchmarking
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Emphasis: Which HR Value Chain Elements Go into the Scorecard? Since the primary focus of HR’s strategic role is value creation‚ thinking about HR architecture means taking broad view of HR’s value chain. Just as a corporate scorecard contains both leading and lagging indicators‚ the HR Scorecard must so the same. Of the four HR architecture elements that we recommend including in the Scorecard- High Performance Work System‚ HR system alignment‚ HR efficiency‚ and HR deliverables-
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