BU247 Chapter Notes - Chapter 2: Balanced Scorecard, Performance Measurement, Strategy Map
Document Summary
Companies use performance measurements for: communicate company strategic objectives, motivate employees, evaluate performance, help managers allocate resources, provide feedback on whether the company is making progress. The challenge is to nd the right mix of nancial and non nancial measures. Originally companies only used nancial measures such as controlling physical assets and money, however realized that money was not the only important component of running a company. Companies now spend money on the following: upgrading skills and motivation of employment, expanding the data captured and shared about processes, customers and suppliers, accelerating new products through research and development, enhance trust relationships. The nancial reports fail to re ect changes in value that occurs when a company either enhances or destroys the value of its intangible assets. Underlying principal measurement must support the companies strategy and operations. Measures organizational performance across four different but linked perspective that are derived from the organization mission, vision and strategy.
