Why do budgets often bear little direct relation to a company's long-term strategic objectives? Because they don't take enough into consideration. A balanced scorecard augments traditional financial measures with benchmarks for performance in three key nonfinancial areas: 1. A company's relationship with its customers. 2. Its key internal processes. 3. Its learning and growth. When performance measures for these areas are added to the financial metrics, the result is not only a broader perspective on the company's health and activities, it's also a powerful organizing framework. A sophisticated instrument panel for coordinating and fine-tuning a company's operations and businesses so that all activities are aligned with its strategy.
Using the Balanced Scorecard as a Strategic Management System
Posted by suzyQ under StrategyFrom http://www.bnet.com 6022 days ago
Made Hot by: on October 31, 2007 3:33 pm
Who Voted for this Story
Subscribe
“Lisa: I have not heard about the expression, "engagement...”
“Adam: Do you have a favorite tool at the moment?...”
“Adam: I have to look into this issue in the near future... ;)...”
“Rachel: Thanks for your input. I tend to agree with you. It was...”
“Hey Martin,
Honestly, no. I think that most people can tell that they are...”
Comments