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Lecture 2

CCT224H5 Lecture Notes - Lecture 2: Performance Indicator, Balanced Scorecard, Performance MetricPremium

2 pages60 viewsFall 2017

Department
Communication, Culture and Technology
Course Code
CCT224H5
Professor
Sam Dumcum
Lecture
2

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Week 2 Balanced Scorecard
Performance metric used in strategic management to identify and improve
various internal functions of a business and their resulting external outcomes
o What is a metric?
Quantifiable measure used to track and assess the status of a
specific business process
Strategic planning and management system
An objective way to tell us if a strategy is working
Offer a comparison that gauges the degree of performance change over time
Measurement of accomplishments, not just the work that is performed
Originated by Dr Robert Kaplan (Harvard Business School) and Dr David Norton
as a performance measurement framework that added strategic non-financial
performance measures to traditional financial metrics to give managers and
executives a more “balanced” view of organizational performance
“traditional performance measurement systems” (management accounting based
systems) based on RESULTS calculated and totalled the “math” for processes
to understand what went wrong
o “outcome focus”
o things have already gone wrong
o does not tell us when something may go wrong in the FUTURE
Four perspectives
o Learning and growth
Our ability to change and improve our knowledge
o Customer perspective
How the customers feel about our organization
o Financial perspective
How well we are doing financially
How shareholders feel about our financial performance
o Internal business processes
Do we have efficient business processes?
Are our products and services helping us achieve fulfill our mission?
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