MARKET 1 Lecture Notes - Lecture 26: Management System, Total Quality Management, Strategic Management
Document Summary
Using the balanced scorecard as a strategic management system kaplan & norton (2007) Nonfinancial metrics are so valuable mainly because they predict future financial performance rather than simply report what"s already happened. Balanced scorecard: supplements traditional finance measures with criteria that measures performance from three additional perspectives: customers, internal business processes and learning and growth the capabilities and acquiring the intangible assets they would need for future growth. Enables companies to track financial results while simultaneously monitoring the progress in building. Recently starting to be used as a strategic management system the scorecard addresses a serious deficiency in traditional management systems: their inability to link a company"s long-term strategy with its short-term actions. The scorecard introduces four new management processes that contribute to linking long-term strategic objectives with short-term actions: translating the vision. Helps managers build consensus around the organization"s vision and strategy.
