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Week 4, DQ 1 - company’s managers to identify what should...

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Week 4, DQ1 Why do you think the Balance Scorecard (BSC) is a useful measurement approach in evaluating performance? Select one financial and one non- financial measure from the BSC and explain how the objectives link together. You may want to use an example from a company you are familiar with to illustrate your response. The balanced scorecard (BSC) is a management and strategic planning system used worldwide in businesses to: • Improve internal and external communications. • Align business activities to the strategy and vision of a company. • Monitor organization performance against a company’s strategic goals. BSC adds strategic, non-financial performance measures to traditional financial metrics, enabling managers of a company a balanced view of organizational performance. BSC has evolved into a full strategic and management system. BSC, when used appropriately, aids a
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Unformatted text preview: company’s managers to identify what should be done and measured. A company’s executives are then enabled to execute their strategies in a clear and concise way. An example of a financial and non-financial measurement of BSC is: • Decrease supply cost and reallocate savings to increase staff in a hospital. (financial). • The savings from the financial BSC will be utilized to improve patient satisfaction (more staff) and have more relaxed, friendlier staff. In the above example, the benefits of using BSC is for organizational alignment and focus. Of importance, using BSC for a hospital will aid in focusing the hospital’s strategy while improving decision-making, improve accountability, and help management set priorities (like improving patient satisfaction and reducing supply costs)....
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