BU247 Lecture Notes - Balanced Scorecard, Strategy Map, Texas Education Agency Accountability Ratings System
Document Summary
Chapter 2 the balanced scorecard and strategy map. Balanced scorecard (bsc) by kaplan and norton. Bsc: provides a framework that continues to measure the financial outcomes but supplements these with nonfinancial measures derived from the company"s strategy 20th century invention. Bsc isn"t restricted to private sector companies, and is more balanced between financial/nonfinancial measures, short/long term measures, internal/external measures. Measures organizational performance across 4 different but linked perspectives that are derived from the company"s mission, vision, and strategy. Companies can track whether they are building or destroying their capabilities for future growth. The 3 nonfinancial bsc perspectives are leading indicators improve these for better financial performance, because the financial measures tend to be lagging indicators of the strategy. The financial and customer measures represent the what of the strategy what the company wants to accomplish with its 2 most important external constituents (shareholders, customers) Process perspective describes how the strategy will be executed, identifies processes (cycle, quality)
