The Integrated Approach Of Using The Four Key Components In The Balance Scorecard To Achieve Company’s Strategic Goals

May 20th, 2009 Comments off
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From earlier articles, we understand that a balanced scorecard looks at the following four fundamental performance areas of an organization and set major/crucial measures/matrix/key performance indicators for them:-

 

1. Financial performance

2. Customer satisfaction

3. Internal operations

4. Learning and innovation

By taking such integrated approach, the Balanced Scorecard is able to balance the vision and mission of the organization with everyday operations. In simple term, a strategic scorecard can help an organization identify the few core functions that translate its vision into reality.

Below explain each performance areas with its relevant measures and its purposes:-

FINANCIAL/MARKET MEASURES

 

  • To inform an organization the results of actions already taken and whether those actions are contributing to its bottom line ( see examples of such measures)

 

CUSTOMER SATISFACTION MEASURES

 

  • To inform an organization how it is performing in the eyes of the customer (see examples of such measures)

 

INTERNAL PROCESS/OPERATIONAL MEASURES

  • To informan organization about what it must do internally to meet customer and financial expectations. ( see examples of such measures)

 

LEARNING AND INNOVATION MEASURES

 

  • Inform the organization on its capacity to continually innovate, improve, and sustain itself.(see examples of such measures)

 

Click here to go to all topics on Balanced Scorecard

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Financial Accounting

 
 

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