Kaplan, R. S. and D. P. Norton. 1992. The equilibrise lineup - Measures that drive performance. Harvard Business Re delineation (January-February): 71-79.Summary by James R. Martin| I believe this was the first bind on the balanced wit. The purpose of the article is to take out the balanced scorecard concept that the authors developed base on a research project involving 12 companies. Kaplan and Norton begin by express that what you measure is what you get. The organizations measurement system affects the behavior of managers and employees. traditional pecuniary measurements (e.g., return on investment and earnings per share) basin win misleading signals. Some alternative measurements have been recommended based on non-financial performance indicators such as cycle sentence and deformity rates. But many senior managers recognize that no single(a) measurement can provide enough information industrious the critical areas of the business. Therefore, a balanced set of me asurements is needed. The balanced scorecard is defined as a set of measurements that give tiptop managers a fast, but comprehensive skyline of the business including in operation(p) measures on customer satisfaction and the organizations innovation and improvement activities, as well as financial measurements.
Kaplan and Norton point out that the practicable measures drive financial performance. The authors use navigating and flying an airplane to cut back the concept. Pilots need information related to factors such as can levels, airspeed, altitude, bearing and destination. Concentrating on a single meas urement could be fatal. Todays managers are ! in a similar situation. They need to view performance in several areas simultaneously. The balanced scorecard does this by providing information from four perspectives: customer, internal business, innovation and learning, and financial. The concept is illustrated in the table below. Perspectives| Questions| Goals| Measurements| Customer| How do customers see...If you want to get a full essay, order it on our website: BestEssayCheap.com
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