AYB321 Lecture Notes - Espn Bottomline, Customer Satisfaction, Customer Retention
Document Summary
Financial measures on their own are insufficient to guide companies to success: they are measures of past strategies don"t look at future performance. Key factors of future financial success: customer relationships, process improvement and innovation and, employee capabilities and motivation. Where financial performance is linked to employees and feedback. Important and useful: direct measure of performance. Too much of a focus on long-term value creation can cause short-term liquidity and profitability issues. The traditional financial accounting model, on its own, does not achieve a balance between short- and long- term imperatives: what we want for a good price, service and new products, can"t just focus on cos. Shifted from industrial age to information age competition: customers demand more. Traditional balance sheets do not put a reliable value on: process capabilities, employee skills & motivation, customer loyalty. Even if we could aasb does not allow it.