AFM241 Chapter Notes - Chapter 8: Balanced Scorecard

• School: University of Waterloo
• Department: Accounting & Financial Management
• Course: AFM241
• Professor: Theophanis Stratopoulos

Document Summary

Dupont analysis helps us decompose roa to look at sources and analyze the changes in roa. Any decision and related action should aim at source rather than affect. There are non-financial factors that may affect roa which aren"t captured in dupont analysis. System for measuring and managing all dimensions of a firm"s performance. Tool that aims to help managers align performance management initiatives with strategy, by translating a firm"s strategy into clear objectives, measures, targets, and initiatives. Balanced indicates it combines traditional financial measures and non-financial drivers. Provides a visual representation of the linkages among these 4 areas of the balanced scorecard. Shareholders" concerns falls into 2 categories: short-term (value, long-term (sustainability) Include cf, sales growth, oi, market share, roa or roe: stem from customes. Identifies objectives and measures for the firm"s customers, and the firm"s value proposition for them. Customers" needs and concerns tend to fall into 4 categories: time, quality, performance/service, cost.