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A new technique to strategic management was developed in early 1990's by Drs. Robert Kaplan (Harvard Business School) and David Norton. Kaplan and Norton explain the innovation of the balanced scorecard as follows:
'The balanced scorecard retains traditional financial measures. However financial measures tell the story of past events, an adequate story for industrial age companies for which investments in long-term capabilities and customer relationships weren't critical for success. These financial measures are inadequate, however, for guiding and evaluating the journey that information age companies must make to create future value through investment in customers, suppliers, employees, processes, technology, and innovation."
The balanced scorecard suggests that we view the organisation from four perspectives and develop key metrics, collect data and analyse it to measure, monitor and control performance.
Consider the Chester River Health System (CRHS) Strategic Planning example. Taking information only from these two sources into account, formulate an Environmental Assessment of CR
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Q. Benefits of shared service centres ? ¸ Economies of scale e.g. sharing overhead of a centralised function or process across divisions in the same group, it avoids divisions
Stephen Hecht, grandson of Marcus Hecht, the founder of Classy Formal Wear and now executive vice president and chief operating officer of the firm, was considering how his new lin
Strategy & principles:- Passing the Test of Moral scrutiny 1. In choosing among strategic alternatives, companies' managers are well advice to embrace actions that are genui
The Fit Shop The Fit Shop Ltd. is a brand new firm that will open its doors exactly four months from today. Its business objective is to sell all types of training, fitne
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Investigation of potential solutions The investigation of potential software solutions must involve what is common practice in the industry. Consider the following questions:
your own company. Consider how this organization has developed their strategic management. Then write an original article addressing how this organization selected a model of strat
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