.jpg "Balanced scorecard approach - Since change encompasses all aspects of business strategy, it is important to set the right measures for business success. A system that provides an overall view of business success is essential, without relying on a few narrow financial measures. To this end, Kaplan and Norton (1992) advocate using the 'balanced scorecard' approach. This includes taking both financial / non-financial measures and examining the benefits offered to all stakeholders of the organization. The balanced scorecard system involves four measures:")
Since change encompasses all aspects of business strategy, it is important to set the right measures for business success. A system that provides an overall view of business success is essential, without relying on a few narrow financial measures. To this end, Kaplan and Norton (1992) advocate using the 'balanced scorecard' approach. This includes taking both financial / non-financial measures and examining the benefits offered to all stakeholders of the organization.
The balanced scorecard system involves four measures:
Financial solution: Here we examine how investors and shareholders understand us.
Customers: How do our customers view us?
Internal Activities: By examining the key areas of customer satisfaction activities, we can identify where an organization should outperform its competitors.
Innovation and education: To survive and prosper, all institutions need to improve and adapt. Any business activity with the objective of creating continuous value can be seen as a learning experience.
Performance indicators are installed in each of these areas. It serves as an objective basis for evaluation and policy making. The winning strategy should address the above and offer a variety of initiatives for the future.
Related Links
Finance - Complete information
Financial Analysis - Complete Information
Strategic Marketing - Behavioural variables
Introduction to marketing strategy
0 Comments
Post a Comment