Week 2 Homework - Measuring Organisational Performance Balanced Score Card Measuring organisational performance can be done by two methodologies

Week 2 Homework - Measuring Organisational Performance...

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Measuring Organisational Performance - Balanced Score Card Measuring organisational performance can be done by two methodologies, economic (product markets -sales growth and market share, profitability - profit margin and ROI, financial market analysis) and effectiveness (internal operational efficiency, balanced scorecard, triple bottom line - CSR & CSI). How will the strategic decisions we as managers make today affect our organisation from tomorrow? Analysis of only financial (economic) metrics can overemphases short term performance. A balanced view is required to succeed in the long term. The triple bottom line and the balanced score card (BSC) identify that organisational performance depend on “long-term prosperity” (Johnson, 12/2013, p. 368). The BSC reviews four interlinked perspectives to measure organisational health, these being; financial (is the company performing financially), customer (do our customers like our products and services), internal (are we efficiently delivering and meeting customer requirements), learning & innovation (is the company growing and creating value). To understand each perspective, a detailed list of goals (future strategic objectives) and metrics of the current strategic objectives needs to be analysed. The fundamental criteria

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