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Kaplan, R. S. and D. P. Norton. 1992. The equilibrise lineup - Measures that drive performance. Harvard Business Re mountain chain (January-February): 71-79.Summary by James R. Martin| I believe this was the first member on the balanced placard. The purpose of the article is to set forth the balanced scorecard concept that the authors developed establish on a research project involving 12 companies. Kaplan and Norton begin by express that what you measure is what you get. The organizations measurement system affects the behavior of managers and employees. tralatitious pecuniary measurements (e.g., return on investment and earnings per share) screw win misleading signals. Some alternative measurements have been recommended based on non-financial performance indicators such as cycle clock and deformity rates. But many senior managers recognize that no single(a) measurement can provide enough information prompt the critical areas of the business. Therefore, a balanced s et of measurements is needed. The balanced scorecard is defined as a set of measurements that give peak managers a fast, but comprehensive arrest of the business including in operation(p) measures on customer satisfaction and the organizations innovation and improvement activities, as well as financial measurements.

Kaplan and Norton point out that the operating(a) measures drive financial performance. The authors use navigating and flying an airplane to cut the concept. Pilots need information related to factors such as enhance levels, airspeed, altitude, bearing and destination. Concentrating on a single measurement could be fat al. Todays managers are in a similar situati! on. They need to view performance in several areas simultaneously. The balanced scorecard does this by providing information from four perspectives: customer, internal business, innovation and learning, and financial. The concept is illustrated in the table below. Perspectives| Questions| Goals| Measurements| Customer| How do customers see...If you want to get a full essay, order it on our website: BestEssayCheap.com

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