CMR 073 D Linking the Balanced Scorecard to Strategy O N Robert S. Kaplan David P. Norton O S T everal years ago, we introduced the concept of a “Balanced Scorecard” for motivating and measuring business unit performance.1 The Scorecard, with four perspectives—financial, customer, internal business processes, and learning and growth—provided a balanced picture of current operating performance as well as the drivers of future performance (see Exhibit 1). Can Business
Words: 10522 - Pages: 43
1.) What are the respective business strategies of Transworld Auto Parts' economy and luxury divisions? (Think about how each division adds value to its customers and differentiates itself from its competition.) The strategy of the Luxury division was to produce the most innovative, quality parts on the market. The Economy division’s strategy was to produce high quality car parts with the lowest lifetime price that are known for durability and low maintenance cost. 2.) List three items
Words: 781 - Pages: 4
The Balanced Scorecard is a strategic performance management framework that has been designed to help an organization monitor its performance and manage the execution of its strategy. The basic concept of the balanced scorecard is how businesses use it to monitor and guide their performance. Key Performance Indicators (both cover and leading) are fragmented into 4 areas of focus: Financial, Customers, Operational and People. These indicators are checked on a regular basis and prearranged as a Scorecard
Words: 900 - Pages: 4
balanced scorecard system an organization goes through four-phases: 1. Strategic Focus – Refine and commit to the organizations’ strategy 2. Assessment –4 steps are involved in this phase a) Audit measures b) Develop new measures as needed c) Apply new measures d) Analyze and report3. Change Planning and Implementation – Implement improvement plans4. Continuous Improvement – a) Track metrics b) Continue improvement c) revisit scorecard cascade. There are several barriers to establishing an effective
Words: 868 - Pages: 4
balance scorecard as an important part of the performance system in recent years. DHL China, the subsidiary company of DHL, was established in 1986 in China. It developed its own performance system to fit the specific environment of China, and accepted the balanced scorecard system as well. The performance management system of DHL China is analysed in this assignment, mainly from the above phase: whether the system well achieved the goal of performance management system; evaluate the balanced scorecard
Words: 849 - Pages: 4
BALANCED SCORECARD EXERCISE East State College is a four-year undergraduate institution and its mission is to provide its students with the intellectual and moral preparation that enables them to lead meaningful and satisfying lives. In addition, the Board of Directors of East State College wants the school to be a center for excellence in education and research. The schools academic programs are divided into two divisions, the Business Division and the Arts and Sciences Division. The president
Words: 1421 - Pages: 6
External Factor Evaluation (EFE) matrix method is a strategic-management tool often used for assessment of current business conditions. The EFE matrix is a good tool to visualize and prioritize the opportunities and threats that a business is facing. The EFE matrix is very similar to the IFE matrix. The major difference between the EFE matrix and the IFE matrix is the type of factors that are included in the model. While the IFE matrix deals with internal factors, the EFE matrix is concerned solely
Words: 420 - Pages: 2
execution of the strategic plan is everybody’s business, not just upper level management. Upper level management creates the strategy, but execution takes place from the bottom up. Chapter 1 So why do strategic plans fail? According to the Balanced Scorecard Collaborative, there are four barriers to strategic implementation: 1. Vision Barrier – No one in the organization understands the strategies of the organization. 2. People Barrier – Most people have objectives that are not linked to the
Words: 650 - Pages: 3
adopt BPM systems for a variety of reasons, but chiefly to improve control over the firm in ways that traditional accounting systems have not allowed. Several approaches, or frameworks, for building and managing BPM systems have evolved with the balanced scorecard as the dominant framework in use today. Despite the growing use of BPM systems in organizations of all kinds, significant problems cause firms to experience difficulty in implementing BPM systems. The problems range across a variety of topics:
Words: 15782 - Pages: 64
employees. The introduction and roll out of the balanced scorecard method to create an individually responsive and responsible organization that exceeds our upcoming aggressive performance targets. The balanced scorecard is a tool that we believe will align individual objectives with business objectives to ensure the continued success of PepsiCo. The following information describes where we are today as an organization, what the balanced scorecard can do for our organization, and some critical success
Words: 3847 - Pages: 16
