BU481 Chapter Notes -Balanced Scorecard, Total Quality Management, Lead Time
Document Summary
A balanced scorecard is a set of measures that gives top managers a fast but comprehensive view of the business. Includes financial measures that tell the results of actions already taken. You cannot rely on one aspect of the organization solely. The balanced scorecard allows managers to look at the business from four important perspectives: financial, customer, innovation and learning, and internal business. Forces managers to focus on the handful of measures that are most critical. Customer concerns tend to fall into four categories: time, quality, performance and service/cost. Quality measures the defect level of incoming products as perceived and measured by the customer. Companies should articulate goals for time, quality, and performance and service. Translate general goals into condensed specific goals and identify an appropriate measure for each. Depending on customers" evaluations to define some of a company"s performance measures forces that company to view its performance through customer"s eyes.
