Lesson-9-Balanced-Scoredcard-英文管理会计课件-Management-A

BalancedScorecardLESSON91BalancedScorecardLESSON91Introductionoflesson9tiesallpreviouslessonstogetherintoamethodforfacilitatingdecisionmakingandperformanceevaluation.focusontheBalancedScorecardasamanagementtoolfortheimplementationofacompany’schosenstrategy.learnabouttheBalancedScorecardapproachtogatheringfinancialandnonfinancialinformation,andhowtoapplytheresultingscoresinstrategicdecisionmaking.usetheBalancedScorecardtocreatesolutionstoperformanceevaluationdeficienciesinagivenbusinesssituationbasedonaspecificstrategicfocus.2Introductionoflesson9tiesaLesson9TopicsoutlineImplementationofstrategyandtheBalancedScorecardEvaluatingsuccessofastrategyStrategicanalysisofoperatingincomeDownsizingandmanagementofcapacityProductivitymeasurement3Lesson9TopicsoutlineImpleTopic1:

Implementationofstrategy

andtheBalancedScorecardLEARNINGOBJECTIVE

DesignaBalancedScorecardappropriatetothegenericstrategyofanorganization.RequiredreadingChapter13,pages354-365,upto“EvaluatingtheSuccessofStrategyandImplementation”4Topic1:ImplementationofstrImplementationofstrategyandtheBalancedScorecardThebalancedscorecardtranslatesanorganization’smissionandstrategyintoasetofperformancemeasuresthatprovidestheframeworkforimplementingitsstrategyItiscalledthebalancedscorecardbecauseitbalancestheuseoffinancialandnonfinancialperformancemeasurestoevaluateperformanceManycompanieshaveintroducedaBalancedScorecardtomanagetheimplementationoftheirstrategiesTopic1:ImplementationofstrategyandtheBalancedScorecard5ImplementationofstrategyanTheBalancedScorecard:From

StrategytoPerformanceMeasuresExh.10-11FinancialHasourfinancial

performanceimproved?CustomerDocustomersrecognizethat

wearedeliveringmorevalue?InternalBusinessProcessesHaveweimprovedkeybusinessprocessessothatwecandelivermorevaluetocustomers?LearningandGrowthArewemaintainingourability

tochangeandimprove?PerformanceMeasuresWhatareour

financialgoals?Whatcustomersdo

wewanttoserveand

howarewegoingto

winandretainthem?Whatinternalbusi-

nessprocessesare

criticaltoproviding

valuetocustomers?VisionandStrategyTopic1:ImplementationofstrategyandtheBalancedScorecard6TheBalancedScorecard:From

TheFinancialPerspectiveEvaluatestheprofitabilityofastrategyfromgrowthintherevenuestreamsorreductionofcosts,andusesthemostobjectivemeasuresinthescorecardsuchasreturnoncapitalemployed,operatingincome,andrevenuegrowth.TheotherthreeperspectiveseventuallyfeedbackintothisdimensionTopic1:ImplementationofstrategyandtheBalancedScorecard7TheFinancialPerspectiveEvalunonfinancialmeasuresWhyweneednonfinancialmeasures?Non-financialmeasuresareleadingindicatorsoffuturefinancialperformance.Financialmeasuresarelagindicatorsthatsummarizetheresultsofpastactions.TheuseoffinancialmeasurestoevaluateanorganizationcanleadtosuboptimaldecisionsNon-financialmeasuresaremorelikelytobeunderstoodandcontrolledbylowerlevelmanagers.Topmanagersareordinarilyresponsibleforfinancialperformancemeasures.Topic1:ImplementationofstrategyandtheBalancedScorecard8nonfinancialmeasuresWhywenTheCustomerPerspectiveIdentifiestargetedcustomerandmarketsegmentsandmeasuresthecompany’ssuccessinthesesegmentsEvaluateswhetherthecompanyisachievingsuccessinmeetingcustomerneedsthroughidentifyingacustomervalueproposition(thatis,byansweringthequestion,“whoarewetothecustomer?”),andutilizesmeasuressuchascustomersatisfaction,numberofnewcustomers,increaseinmarketshare,andsoon.Topic1:ImplementationofstrategyandtheBalancedScorecard9TheCustomerPerspectiveIdentiTheInternalBusinessProspectiveFocusesoninternaloperationsthatcreatevalueforcustomersthat,inturn,furthersthefinancialperspectivebyincreasingshareholdervalueEvaluatestheeffectivenessandefficiencyofmanagingtheinternaloperationsorvaluechain.Itfocusesonthreeprinciplesub-processes:innovation,operations,andpost-salesservice.Topic1:ImplementationofstrategyandtheBalancedScorecard10TheInternalBusinessProspectTheLearning&GrowthPerspectiveEvaluatesthecapabilitiestheorganizationmustexceltoachievesuperiorinternalprocessesthatcreatevalueforbothshareholdersandcustomers.Topic1:ImplementationofstrategyandtheBalancedScorecard11TheLearning&GrowthPerspectTheLearning&GrowthPerspectiveLearningandgrowthemphasizesthefollowingfourfactors:Goalcongruence,measuredbysatisfactionratingsSkill/processdevelopment,measuredbythepercentageofemployeestrainedWorkforceempowerment,measuredbythepercentageoflineworkersmakingmanagementdecisionsEnhancedinformationsystemcapabilities,measuredbythepercentageofprocesseswithreal-timefeedbackTopic1:ImplementationofstrategyandtheBalancedScorecard12TheLearning&GrowthPerspectTheBalancedscorecardWithineachperspective,objectivesareidentifiedwhichwouldcontributetoattaininggoalsExamplesAcustomerperspectiveobjectivemightbetoincreasethepercentageofcustomerswhowouldrecommendtheproducttoafriendAlearningandgrowth objectivemightbetoincrease thenumberofcross-trainedemployeesTopic1:ImplementationofstrategyandtheBalancedScorecard13TheBalancedscorecardWithineTheBalancedscorecardGotoEXHIBIT9-1:BSCObjectives,Measures,andInitiativesGotoEXHIBIT9-2:examplesoftypicaltypesofbalancedscorecardmeasuresineachperspective.Topic1:ImplementationofstrategyandtheBalancedScorecard14TheBalancedscorecardGotoEXThebalancedscorecardlaysoutconcreteactionstoattaindesiredoutcomes.Abalancedscorecardshouldhavemeasures

thatarelinkedtogetheronacause-and-effectbasis.Ifweimprove

oneperformance

measure...Anotherdesired

performancemeasure

willimprove.TheBalancedScorecardThenTopic1:ImplementationofstrategyandtheBalancedScorecard15ThebalancedscorecardlaysoumajorbenefitofBSCAmajorbenefitofBSC:itpromotescausalthinkingReengineeringtrainingrequiredtoimplementthereengineeringTopic1:ImplementationofstrategyandtheBalancedScorecard16majorbenefitofBSCAmajorbeTheBalancedscorecardObjectivesarelinkedacrossperspectivesinordertoachievecompanygoalsFinancialobjectivesarenormallysetfirst,theobjectivesfromtheotherperspectivesaresetinorder toaccomplishthefinancialobjectivesTopic1:ImplementationofstrategyandtheBalancedScorecard17TheBalancedscorecardObjectivTheBalancedScorecardFlowchartTopic1:ImplementationofstrategyandtheBalancedScorecard18TheBalancedScorecardFlowchaStrategymap19Strategymap19TheBalancedScorecard

JaguarExample

EmployeeskillsininstallingoptionsNumberof

optionsavailableTimeto

installoptionCustomersatisfaction

withoptionsNumberofcarssoldContributionpercarProfitLearning

andGrowthInternalBusinessProcessesCustomerFinancialExh.10-13Topic1:ImplementationofstrategyandtheBalancedScorecard20TheBalancedScorecard

JaguarTheBalancedScorecard

JaguarExample

EmployeeskillsininstallingoptionsNumberof

optionsavailableTimeto

installoptionCustomersatisfaction

withoptionsNumberofcarssoldContributionpercarProfitIncreaseOptionsTime

DecreasesStrategiesSatisfactionIncreasesIncrease

SkillsResultsTopic1:ImplementationofstrategyandtheBalancedScorecard21TheBalancedScorecard

JaguarEmployeeskillsininstallingoptionsNumberof

optionsavailableTimeto

installoptionCustomersatisfaction

withoptionsNumberofcarssoldContributionpercarProfitIncreaseOptionsStrategiesSatisfactionIncreasesResultsCarssoldIncreaseTheBalancedScorecard

JaguarExample

Topic1:ImplementationofstrategyandtheBalancedScorecard22EmployeeskillsininstallingEmployeeskillsininstallingoptionsNumberof

optionsavailableTimeto

installoptionCustomersatisfaction

withoptionsNumberofcarssoldContributionpercarProfitStrategiesResultsTheBalancedScorecard

JaguarExample

Time

DecreasesIncrease

SkillsContribution

IncreasesTopic1:ImplementationofstrategyandtheBalancedScorecard23EmployeeskillsininstallingTheBalancedScorecard

JaguarExample

EmployeeskillsininstallingoptionsNumberof

optionsavailableTimeto

installoptionCustomersatisfaction

withoptionsNumberofcarssoldContributionpercarProfitResultsTime

DecreasesIncrease

SkillsContribution

IncreasesProfits

IncreaseIfnumber

ofcarssold

andcontribution

percarincrease,

profits

increase.IncreaseOptionsStrategiesSatisfactionIncreasesTopic1:ImplementationofstrategyandtheBalancedScorecard24TheBalancedScorecard

JaguarAdvantagesofGraphicFeedbackWheninterpretingitsperformance,Jaguarwilllookfor

continualimprovement.Itiseasiertospottrendsorunusualperformanceifthisdataispresentedgraphically.Topic1:ImplementationofstrategyandtheBalancedScorecard25AdvantagesofGraphicFeedbackTopic2:

Evaluatingsuccessofa

strategyLEARNINGOBJECTIVES

Evaluatethesuccessofastrategyusingthestoplightsystem.RequiredreadingChapter13,pages365-366,“EvaluatingtheSuccessofStrategyandImplementation”26Topic2:EvaluatingsuccessofTheBalancedscorecardItforcesabusinesstoconsideritscriticalsuccessfactors,andtoidentifybusinessobjectives.Itforcesacompanytoconsidertherangeofactivitiesandresultsthatleadtosuccess,notjustshort-termfinancialones.Ifdesignedwell,suchasystemcanbeclearlyunderstoodandadaptabletochangingconditions.Itislesssubjecttomanipulation.Topic2:

Evaluatingsuccessofastrategy27TheBalancedscorecardItforceTheBalancedscorecardImplementingaBalancedScorecardisnotaneasytask.Itrequiresmanagerstodevelopaclearvisionoftheorganizationandastrategicplan,totranslatetheplanintoaction,andtodevelopaBalancedScorecard.Topic2:

Evaluatingsuccessofastrategy28TheBalancedscorecardImplemenImplementingaBalancedScorecardMusthavecommitmentandleadershipfromtopmanagementMustbecommunicatedtoallemployeesTopic2:

Evaluatingsuccessofastrategy29ImplementingaBalancedScorecTheBalancedScorecard

andCompensationIncentivecompensationshouldbelinkedto

balancedscorecardperformancemeasures.

Topic2:

Evaluatingsuccessofastrategy30TheBalancedScorecard

andComStepsofimplementingBSCTopic2:

Evaluatingsuccessofastrategy31StepsofimplementingBSCTopicFeaturesofaGoodBalancedScorecardTellsthestoryofafirmsstrategy,articulatingasequenceofcause-and-effectrelationships:thelinksamongthevariousperspectivesthatdescribehowstrategywillbeimplementedHelpscommunicatethestrategytoallmembersoftheorganizationbytranslatingthestrategyintoacoherentandlinkedsetofunderstandableandmeasurableoperationaltargetsTopic2:

Evaluatingsuccessofastrategy32FeaturesofaGoodBalancedScFeaturesofaGoodBalancedScorecardMustmotivatemanagerstotakeactionsthateventuallyresultinimprovementsinfinancialperformancePredominatelyappliestofor-profitentities,buthassomeapplicationtonot-for-profitentitiesaswellLimitsthenumberofmeasures,identifyingonlythemostcriticalonesHighlightsless-than-optimaltradeoffsthatmanagersmaymakewhentheyfailtoconsideroperationalandfinancialmeasurestogetherTopic2:

Evaluatingsuccessofastrategy33FeaturesofaGoodBalancedScBalancedScorecardImplementationPitfallsManagersshouldnotassumethecause-and-effectlinkagesareprecise:theyaremerelyhypothesesManagersshouldnotseekimprovementsacrossallofthemeasuresallofthetimeManagersshouldnotuseonlyobjectivemeasures:subjectivemeasuresareimportantaswellTopic2:

Evaluatingsuccessofastrategy34BalancedScorecardImplementatBalancedScorecardImplementationPitfallsManagersmustincludebothcostsandbenefitsofinitiativesplacedinthebalancedscorecard:costsareoftenoverlookedManagersshouldnotignorenonfinancialmeasureswhenevaluatingemployeesManagersshouldnotusetoomanymeasuresTopic2:

Evaluatingsuccessofastrategy35BalancedScorecardImplementatEvaluatingsuccessofastrategy

ManagerscancomparetheBalancedScorecardtoactualresultsusingthetargetstoplightsystem.stoplightsystem:usedtocomparethebalancedscorecardtoactualresults.Topic2:

Evaluatingsuccessofastrategy36EvaluatingsuccessofastratestoplightsystemThetargetisbrokenintothreecategories:green-light(acceptable)

representsresultsthatmeetexpectations,yellow-lightrepresentsresultsslightlybelowthedesiredtargetred-light

representsresultsbelowthedesiredtargetGotoEXAMPLE9.1Topic2:

Evaluatingsuccessofastrategy37stoplightsystemThetargetisstoplightsystemGotoEXAMPLE9.1Topic2:

Evaluatingsuccessofastrategy38stoplightsystemGotoEXAMPLETopic3:

Strategicanalysisof

operatingincomeLEARNINGOBJECTIVEEvaluatechangeinoperatingincomeresultingfromimplementationofstrategiccomponents:growth,productdifferentiation,andcostleadershiporproductivity.RequiredreadingChapter13,pages366-373,from“StrategicAnalysisofOperatingIncome”upto“DownsizingandTheManagementofCapacity”39Topic3:StrategicanalysisofStrategicanalysisofoperatingincomeForevaluatingimplementationofcostleadership,productdifferentiation,andgrowthstrategies,managerscanuseastrategicanalysisofoperatingincomeoveraminimumoftwoyears.StrategicAnalysisofOperatingIncome–threeparts:GrowthComponent

Price-RecoveryComponentProductivityComponentTopic3:

Strategicanalysisofoperatingincome40Strategicanalysisofoperatin1.GrowthComponentGrowthComponent

–measuresthechangeinoperatingincomeattributablesolelytothechangeinthequantityofoutputsoldbetweenthecurrentandpriorperiods.Topic3:

Strategicanalysisofoperatingincome411.GrowthComponentGrowthCom1.GrowthComponentRevenueEffectofGrowthTopic3:

StrategicanalysisofoperatingincomeCostEffectofGrowthforVariableCostsPriorPrior421.GrowthComponentRevenueEfCostEffectofGrowthforFixedCostsAssumingAdequateCurrentCapacity:AssumingInadequateCurrentCapacity:Topic3:

Strategicanalysisofoperatingincome43CostEffectofGrowthforFixe2.Price-RecoveryComponentPrice-RecoveryComponent

–measuresthechangeinoperatingincomeattributablesolelytochangesinpricesofinputsandoutputsbetweenthecurrentandpriorperiodsTopic3:

Strategicanalysisofoperatingincome442.Price-RecoveryComponentPr2.Price-RecoveryComponent

RevenueEffectofpricerecoveryTopic3:

StrategicanalysisofoperatingincomeCostEffectofpricerecovery452.Price-RecoveryComponentReCostEffectofPriceRecoveryFixedCostswithAdequateCapacityFixedCostswithoutAdequateCapacityTopic3:

Strategicanalysisofoperatingincome46CostEffectofPriceRecoveryF3.ProductivityComponentProductivityComponent

–measuresthechangeincostsattributabletoachangeinthequantityofinputsbetweenthecurrentandpriorperiodsCostEffectofProductivityforVariableCostsTopic3:

Strategicanalysisofoperatingincome473.ProductivityComponentProduCostEffectofProductivityforFixedCostsWithAdequateCapacityWithoutAdequateCapacityTopic3:

Strategicanalysisofoperatingincome48CostEffectofProductivityfoStrategicAnalysisofProfitabilityIllustratedTopic3:

Strategicanalysisofoperatingincome49StrategicAnalysisofProfitabFurtherAnalysis:IllustratedTheeffectoftheindustry-market-sizefactoronoperatingincomeTheeffectofproductdifferentiationonoperatingincomeTheeffectofcostleadershiponoperatingincomeTopic3:

Strategicanalysisofoperatingincome50FurtherAnalysis:IllustratedTopic4:

Downsizingand

managementofcapacityLEARNINGOBJECTIVEIdentifyunusedcapacity,anddesignrecommendationstodealwiththatcapacity.RequiredreadingChapter13,pages373-377,from“DownsizingandtheManagementofCapacity”upto“ProblemforSelf–Study”51Topic4:Downsizingand

manageUnusedCapacityUnusedCapacityistheamountofproductivecapacityavailableoverandabovetheproductivecapacityemployedtomeetconsumerdemandinthecurrentperiodManagerscanreducecapacity-basedfixedcostsbymeasuringandmanagingunusedcapacityTopic4:Downsizingandmanagementofcapacity52UnusedCapacityUnusedCapacitAnalysisofUnusedCapacityTwoImportantFeatures:EngineeredCostsresultfromacause-and-effectrelationshipbetweenthecostdriverandtheresourcesusedtoproducethatoutputDiscretionaryCostshavetwoparts:Theyarisefromperiodic(annual)decisionsregardingthemaximumamounttobeincurredTheyhavenomeasurablecause-and-effectrelationshipbetweenoutputandresourcesusedTopic4:Downsizingandmanagementofcapacity53AnalysisofUnusedCapacityTwoAnalysisofUnusedCapacityEngineeredUnusedCapacityCosts=UnusedCapacity×Indirectengineeredcost=(Maximumcapacity–currentproduction)×Indirectengineeredcost(conversioncostrate)Thediscretionarycostsaremoredifficulttorelatetousedorunusedcapacity.Topic4:Downsizingandmanagementofcapacity54AnalysisofUnusedCapacityEngDifferencesBetweenEngineeredandDiscretionaryCostsIllustratedTopic4:Downsizingandmanagementofcapacity55DifferencesBetweenEngineeredManagingunusedcapacityFirmshavetwooptionsformanagingunusedcapacity.Theycaneliminatetheunusedcapacitybydownsizing(alsoknownasrightsizing)ortheycanattempttousetheunusedcapacitybygrowingrevenues.Topic4:Downsizingandmanagementofcapacity56ManagingunusedcapacityFirmsDownsizingDownsizing(Rightsizing)isanintegratedapproachofconfiguringprocesses,products,andpeopletomatchcoststotheactivitiesthatneedtobeperformedtooperateeffectivelyandefficientlyinthepresentandfutureButbeforedownsizing,anorganizationmustconsiderfuturegrowthexpectationsandtheimpactofreductionsonqualityandefficienciesTopic4:Downsizingandmanagementofcapacity57DownsizingDownsizing(RightsizTopic5:

ProductivitymeasurementLEARNINGOBJECTIVESEvaluatepartialandtotalfactorproductivityforanorganization,andrecommendchanges.RequiredreadingAppendixtoChapter13,pages381-384,“Appendix:ProductivityMeasurement

“58Topic5:ProductivitymeasuremProductivitymeasurementProductivitymeasurestherelationshipbetweenactualinputs(quantityandcosts)andactualoutputsproduced.Thelowertheinputforagivenlevelofoutput,thegreatertheproductivityachieved.Topic5:Productivitymeasurement59ProductivitymeasurementProducPartialproductivitymeasuresMostfrequentlyusedproductivitymeasuresPartialproductivity=Quantityofoutputproduced/QuantityofinputusedPartialproductivitymeasuresindividualinputsandisolatesrelevantfactorsofimportancetomanagers,butfailstodeterminetheoverallimpactonproductivitybythemixofinputs.Topic5:Productivitymeasurement60PartialproductivitymeasuresMTotal-factorproductivity(TFP)Total-factorproductivity=Quantityofoutputproduced/CostsofallinputsusedTFPconsidersallinputssimultaneouslyandthetrade-offacrossinputsbasedoncurrentinputprices.Topic5:Productivitymeasurement61Total-factorproductivity(TFPEndofLesson9Homework:13-22(p385),13-23(p385)62EndofLesson9Homework:13-2BalancedScorecardLESSON963BalancedScorecardLESSON91Introductionoflesson9tiesallpreviouslessonstogetherintoamethodforfacilitatingdecisionmakingandperformanceevaluation.focusontheBalancedScorecardasamanagementtoolfortheimplementationofacompany’schosenstrategy.learnabouttheBalancedScorecardapproachtogatheringfinancialandnonfinancialinformation,andhowtoapplytheresultingscoresinstrategicdecisionmaking.usetheBalancedScorecardtocreatesolutionstoperformanceevaluationdeficienciesinagivenbusinesssituationbasedonaspecificstrategicfocus.64Introductionoflesson9tiesaLesson9TopicsoutlineImplementationofstrategyandtheBalancedScorecardEvaluatingsuccessofastrategyStrategicanalysisofoperatingincomeDownsizingandmanagementofcapacityProductivitymeasurement65Lesson9TopicsoutlineImpleTopic1:

Implementationofstrategy

andtheBalancedScorecardLEARNINGOBJECTIVE

DesignaBalancedScorecardappropriatetothegenericstrategyofanorganization.RequiredreadingChapter13,pages354-365,upto“EvaluatingtheSuccessofStrategyandImplementation”66Topic1:ImplementationofstrImplementationofstrategyandtheBalancedScorecardThebalancedscorecardtranslatesanorganization’smissionandstrategyintoasetofperformancemeasuresthatprovidestheframeworkforimplementingitsstrategyItiscalledthebalancedscorecardbecauseitbalancestheuseoffinancialandnonfinancialperformancemeasurestoevaluateperformanceManycompanieshaveintroducedaBalancedScorecardtomanagetheimplementationoftheirstrategiesTopic1:ImplementationofstrategyandtheBalancedScorecard67ImplementationofstrategyanTheBalancedScorecard:From

StrategytoPerformanceMeasuresExh.10-11FinancialHasourfinancial

performanceimproved?CustomerDocustomersrecognizethat

wearedeliveringmorevalue?InternalBusinessProcessesHaveweimprovedkeybusinessprocessessothatwecandelivermorevaluetocustomers?LearningandGrowthArewemaintainingourability

tochangeandimprove?PerformanceMeasuresWhatareour

financialgoals?Whatcustomersdo

wewanttoserveand

howarewegoingto

winandretainthem?Whatinternalbusi-

nessprocessesare

criticaltoproviding

valuetocustomers?VisionandStrategyTopic1:ImplementationofstrategyandtheBalancedScorecard68TheBalancedScorecard:From

TheFinancialPerspectiveEvaluatestheprofitabilityofastrategyfromgrowthintherevenuestreamsorreductionofcosts,andusesthemostobjectivemeasuresinthescorecardsuchasreturnoncapitalemployed,operatingincome,andrevenuegrowth.TheotherthreeperspectiveseventuallyfeedbackintothisdimensionTopic1:ImplementationofstrategyandtheBalancedScorecard69TheFinancialPerspectiveEvalunonfinancialmeasuresWhyweneednonfinancialmeasures?Non-financialmeasuresareleadingindicatorsoffuturefinancialperformance.Financialmeasuresarelagindicatorsthatsummarizetheresultsofpastactions.TheuseoffinancialmeasurestoevaluateanorganizationcanleadtosuboptimaldecisionsNon-financialmeasuresaremorelikelytobeunderstoodandcontrolledbylowerlevelmanagers.Topmanagersareordinarilyresponsibleforfinancialperformancemeasures.Topic1:ImplementationofstrategyandtheBalancedScorecard70nonfinancialmeasuresWhywenTheCustomerPerspectiveIdentifiestargetedcustomerandmarketsegmentsandmeasuresthecompany’ssuccessinthesesegmentsEvaluateswhetherthecompanyisachievingsuccessinmeetingcustomerneedsthroughidentifyingacustomervalueproposition(thatis,byansweringthequestion,“whoarewetothecustomer?”),andutilizesmeasuressuchascustomersatisfaction,numberofnewcustomers,increaseinmarketshare,andsoon.Topic1:ImplementationofstrategyandtheBalancedScorecard71TheCustomerPerspectiveIdentiTheInternalBusinessProspectiveFocusesoninternaloperationsthatcreatevalueforcustomersthat,inturn,furthersthefinancialperspectivebyincreasingshareholdervalueEvaluatestheeffectivenessandefficiencyofmanagingtheinternaloperationsorvaluechain.Itfocusesonthreeprinciplesub-processes:innovation,operations,andpost-salesservice.Topic1:ImplementationofstrategyandtheBalancedScorecard72TheInternalBusinessProspectTheLearning&GrowthPerspectiveEvaluatesthecapabilitiestheorganizationmustexceltoachievesuperiorinternalprocessesthatcreatevalueforbothshareholdersandcustomers.Topic1:ImplementationofstrategyandtheBalancedScorecard73TheLearning&GrowthPerspectTheLearning&GrowthPerspectiveLearningandgrowthemphasizesthefollowingfourfactors:Goalcongruence,measuredbysatisfactionratingsSkill/processdevelopment,measuredbythepercentageofemployeestrainedWorkforceempowerment,measuredbythepercentageoflineworkersmakingmanagementdecisionsEnhancedinformationsystemcapabilities,measuredbythepercentageofprocesseswithreal-timefeedbackTopic1:ImplementationofstrategyandtheBalancedScorecard74TheLearning&GrowthPerspectTheBalancedscorecardWithineachperspective,objectivesareidentifiedwhichwouldcontributetoattaininggoalsExamplesAcustomerperspectiveobjectivemightbetoincreasethepercentageofcustomerswhowouldrecommendtheproducttoafriendAlearningandgrowth objectivemightbetoincrease thenumberofcross-trainedemployeesTopic1:ImplementationofstrategyandtheBalancedScorecard75TheBalancedscorecardWithineTheBalancedscorecardGotoEXHIBIT9-1:BSCObjectives,Measures,andInitiativesGotoEXHIBIT9-2:examplesoftypicaltypesofbalancedscorecardmeasuresineachperspective.Topic1:ImplementationofstrategyandtheBalancedScorecard76TheBalancedscorecardGotoEXThebalancedscorecardlaysoutconcreteactionstoattaindesiredoutcomes.Abalancedscorecardshouldhavemeasures

thatarelinkedtogetheronacause-and-effectbasis.Ifweimprove

oneperformance

measure...Anotherdesired

performancemeasure

willimprove.TheBalancedScorecardThenTopic1:ImplementationofstrategyandtheBalancedScorecard77ThebalancedscorecardlaysoumajorbenefitofBSCAmajorbenefitofBSC:itpromotescausalthink