| What Does The Balanced Scorecard Measure?
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| The balanced scorecard measures an organization from 4 distinct
viewpoints, and suggests that metrics and analysis occur in these 4 areas to
gain a broad perspective of the business: |
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Financial perspective (how do we perceive our shareholders?)
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Customer perspective (how do we perceive our customers?)
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| • |
Process perspective (in what processes should we excel to succeed?)
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Learning and innovation perspective (how will we sustain our ability to change
and improve?)
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| What Are The Benefits of Utilizing The Balanced Scorecard?
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| Among the many benefits of the Balanced Scorecard approach, the
following are considered among the greatest: |
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Alignment of key performance measures with strategy at all levels
of an organization.
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Management has a comprehensive picture of business operations.
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Ensures communication and understanding of business goals and strategies at all
levels of an organization.
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Most importantly, Balanced Scorecard provides strategic feedback and learning
so the organization can continue to refine and improve performance.
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