BU247 Chapter Notes - Chapter 2: Walmart, Organizational Culture, Balanced Scorecard
Document Summary
Motivate employees to help the company achieve its strategic objectives, etc. Companies use performance measurement systems to perform multiple roles: Financial reports fail to reflect the changes in value that occur when a company either enhances or destroys the value of its intangible assets. A fundamental principle underlying management accounting is that measurement must support the company"s strategy and operations. The balanced scorecard provides a framework that continues to measure financial outcomes but supplements these with nonfinancial measures derived from the company"s strategy. The balanced scorecard measures organizational performance across four different but linked perspectives that are derived from the organizations mission, vision, and strategy. The financial and customer measures represent the what of strategy, that is, what the company wants to accomplish with its two most important external constituents: shareholders and customers. The process perspective describes how the strategy will be executed; it identifies the processes that are most important to meet the expectations of shareholders and customers.
