COMS 210 Lecture Notes - Lecture 5: Intranet, Balanced Scorecard, Total Quality Management
19 Oct 2016
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Document Summary
Kaplan and norton developed the balanced scorecard in early 1990"s. The point of it is not to think like the previous industrial era where all that mattered was the bottom-line (financial perspective). The balanced scorecard builds on some previous management ideas like total. The balanced scorecard is a management system (not only a measurement system). It uses a metric system to measure performance in all 4 areas: financial perspective. K&n don"t neglect the previous ways of measuring financial data. They say that less emphasis should be put on the financial perspective because it causes imbalance with the other perspectives of the company. Should include cost-benefit data: the customer perspective. Recent management has noticed the importance of customer satisfaction with a company and/or product. For example, if customers are not satisfied, they will find another supplier. Bad performance in this sector is an indicator of future decline even though the financial perspective may look good.
