Balance Scorecard The balanced scorecard is a strategic planning and management system that is used to align business activities to the vision statement of an organization, improve internal and external communications, and monitor organization performance against strategic goals. It was originated by Robert Kaplan (Harvard Business School) and David Norton as a performance measurement framework that added non-financial performance measures to financial performance measure to give managers and executives
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www.hbrreprints.org BEST OF HBR Using the Balanced Scorecard as a Strategic Management System by Robert S. Kaplan and David P Norton . • Included with this full-text Harvard Business Review article: 1 Article Summary The Idea in Brief—the core idea The Idea in Practice—putting the idea to work 2 Using the Balanced Scorecard as a Strategic Management System 14 Further Reading A list of related materials, with annotations to guide further exploration of the article’s ideas and
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Analysis The Balanced Scorecard (BSC) was an idea that was developed in the early nineties by Kaplan and Norton as an approach towards performance evaluation. The scorecard has four perspectives; the financial perspective, the customer perspective, the internal business processes perspective and the learning, growth and innovation perspective. The financial aspect requires that for an organization to succeed financially there is need to improve on the shareholder value, realize return on capital
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The balanced scorecard system has some distinct advantages that make it suitable for improving performance. The first is that it is focused on getting results. This is why the approach in case of US Postal Services produced positive results. The second advantage is that linking employee interests in a service industry to business processes, and to customer satisfaction are strong drivers of success. These lead to improved financial results. Another important reason why balanced scorecard is useful
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The Current Situation at Alto Company. The performance management system (PMS) is still a work in progress: Performance metrics need to be assigned for each job and linked to the position agreement in the job description. Then, employees will be able to self-monitor performance on their own dashboard displaying their contribution (Cokins, 2010), which is linked to their job evaluation. Before the PMS is finalized the following considerations are offered, followed by a plan to implement a holistic
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Course Outline School: Department: Course Title: Course Code: Course Hours/Credits: Prerequisites: Co-requisites: Eligible for Prior Learning, Assessment and Recognition: Originated by: Creation Date: Revised by: Revision Date: Current Semester: Approved by: Business Graduate Studies Accounting for Managerial Decision Making ACCT 701 56 N/A N/A Yes Basil Chan, John Harris Summer 2013 Geoffrey Prince Summer 2014 Winter 2015 Chairperson/Dean Students are expected to review and understand
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Chapter 2 |The Balanced Scorecard and Strategy Map |[pic] | QUESTIONS 2-1 Financial performance measures, such as operating income and return on investment, indicate whether the company’s strategy and its implementation are increasing shareholder value. However, financial measures tend to be lagging indicators of the strategy. Firms monitor nonfinancial measures to understand whether they are building
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University of the Potomac BUS510 Professor: Petya Case Study: The Home Depot’s Eco Vicky Thomas 7/18/15 Apply a PESTEL analysis to The Home Depot and Ford Motor Company. Which are the most important? Which are the most important external forces impinging upon the companies? Are the forces the same or are they different? Why? The Home Depot’s most important external forces would likely be ecological, sociocultural and economic. The most important forces for Ford Motor Company would
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1) They realized that balanced scorecards help the departments look beyond their own operations and they could activate everyone in the company by putting sensible goals related to the main goals of the company. Also it improves communications by providing a focal point and common language around the key value drivers of the organization and it helps IT recognized other business areas which enhance the cooperation among departments. Besides, it would help the company to get to know the needs of the
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CAPTER 1-2 QUESTIONS 1. Goods production and Services supplu are produced or performed by companies; a good usually refers to tangible products while a service is an intangible product performed by a company. The first difference between a good and a service is the one I already cited, basically a good can be seen and touched while a service cannot. The second difference is that services are subject to variation; this means that a good is always the same while a service has a certain degree
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