ECON 1 Lecture Notes - Lecture 8: Balanced Scorecard, Business Process, Asset Turnover
Document Summary
Roi and earning-per-share can give misleading signals for continuous improvement and innovation. Some managers focus on financial measures, others on operational measures (such as cycle time) But a balanced presentation of both financial and operational measures is needed. Minimizes information overload forces managers to focus on the handful of measures that are most critical the scorecard brings together, in a single management report, many of the seemingly disparate elements of a company"s competitive agenda. Customer performance: get standard products to market sooner, become customers supplier of choice, improve costumers" time to market, partnerships with costumers, innovative products tailored to customer needs. Measures for costumer perspective computer manufacturer: competitive rankings + measuring percentage of revenue from-third party relationships. Expensive medical equipment: customer-based metrics (up-time percentage and mean-time response to a service call) Semiconductor (halbleiter) company: asked major customers to rank the company against comparable suppliers. Example for third parties to perform anonymous customer surveys: j. d.
