PPA 705 Chapter Notes -Balanced Scorecard, Customer Satisfaction, Strategic Management

• School: Ryerson University
• Department: Politics and Public Administration
• Course: PPA 705
• Professor: Ron Babin

Document Summary

Lo2 describe how financial and nonfinancial measures are used to evaluate organizations performance. Lo4 explain how the balanced scorecard is implemented. Lo5 discuss how the balanced scorecard affects strategic management and incentives. Lo6 discuss the future direction of cost accounting. These learning objectives (lo1 through lo6) are cross-referenced in the textbook to individual exercises and problems. Financial measures provide information measured in dollars or ratios of dollars. Examples are roi, operating margin, total sales, and so on. Nonfinancial measures provide performance information about activities that cannot be measured in dollars. Examples would be defect rates, market share, and employee retention rates. Four potential perspectives for a balanced scorecard are financial, customer-related, learning and growth, and internal business processes. These are related because success in learning and growth and internal business processes should increase customer satisfaction and finally financial performance. Financial perspective: operating margin, cost per mile per ton transported.