Balanced Scorecard: Measures that Drive PerformancePowerPoint PresentationBalanced scorecard includes both financial and operational measuresFinancial PerspectiveCustomer PerspectiveInternal Business PerspectiveInnovation PerspectiveBalanced Scorecard: Measures that Drive PerformanceNo single measure can focus attention on the critical areas of a businessManagers need a balanced representation of operational and financial measuresTraditional financial measures tell the results of actions already taken Answers the question: “How DID we do?”Operational measuresDrivers of future financial performanceAnswer the question “How WILL we do?”Balanced scorecard includes both financial and operational measures4 main perspectivesFinancial Perspective (financial)“How do we look to shareholders?”Customer perspective (operational)“How do customers see us?”Internal business perspective (operational)“Are we improving our current business processes?”Innovation perspective (operational)“How are we doing at developing new products?”Financial PerspectiveGOALSSucceedSurvivalMEASURESSales growth / earnings growth / return on equityCash flowCustomer PerspectiveGOALSSatisfactionTimely deliveryTimely serviceMEASURESCompetitive rankOn timeResponse to service callsInternal Business PerspectiveGOALSQualitySpeedMEASURESReject ratesTime to completeInnovation PerspectiveGOALSNew productsTechnology leaderTime to marketMEASURES% of sales from new productsTime to develop new productsNew product introduction versus
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