When building a balanced scorecard, tailor the measures to fit your company’s particular challenges. What you measure is what you get: the measures you use strongly affect the behavior of your managers and employees. Tracking all the important measures at once guards against suboptimization-that is, achieving gains in one area at the expense of another. Next, identify the handful of measures that are most critical to your company’s success in each of the four perspectives. How can we continue to improve and create value? What internal processes must we excel at?ģ. Together, they give you a more complete view of how your company has been performing, as well as where it’s headed.Ī balanced scorecard asks you to think of your company’s mission and strategy from four key perspectives:Ģ. It’s a set of interrelated gauges that links seemingly disparate information about a company’s finances and operations. Think of a balanced scorecard as the instrument panel in the cockpit of an airplane. In the same way that you can’t fly an airplane with just one instrument gauge, you can’t manage a company with just one kind of performance measure.
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