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Managing Finance

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Submitted By Qasim112
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Hi Ihab
Thank you for your great post.
The process of implementing BSC is not easy and selecting the best performance measurement is the most challenging step. I agree with you how critical BSC is playing in the organizational future success as it is enhance effectively in developing the organizational strategy, measuring the result of the objectives. A survey been done of U.S. financial services companies (Ittner and Laecker, 2006) discovered that, most of these companies were not satisfied with their measurement systems. They believed there was too much emphasis on financial measures such as earnings and accounting returns and little emphasis on drivers of value such as customer and employee satisfaction, innovation and quality. ‘Limitations of financial data as a measure of total firm value, non-financial performance measures are necessary for an efficient performance evaluation’ (Kaplan and Norton, 1992).
It is very important to take Stakeholders as first consideration in the implantation of BSC, where the organization must first of all understand the company value drivers and its mission, which means, the valuable approaches that will make the stakeholders convinced with the company future profit. Once these approaches are determined, the company will be able to use measurements that will translate the stakeholder’s objectives.
Best Regards
Qasim
References:
Kaplan, R. S. and Norton, D. P. (1992). ‘The balanced scorecard - measures that drive performance;, Harvard Business Review, 70(January-February), pp. 71–79.
Ittner, C & Lacker, D (2006). Non-financial Performance Measures: What Works and What Doesn't. [Online] available from: http://knowledge.wharton.upenn.edu/article.cfm?articleid=279 [last Accessed June, 3rd 2013].

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