As business becomes more complex and competitive, traditional financial measures of performance fail to give managers all the information they need to make intelligent strategic and day-to-day decisions. A powerful new means of delivering this information is called the balanced scorecard, a mix of financial and nonfinancial indicators about customers, internal processes, organizational learning, shareholder value, quality, community relations, and so on. The balanced scorecard enables managers to accelerate continuous performance improvement, facilitate strategic formulation and execution, and strengthen internal and external accountability for creating value. This publication describes the concept of the balanced scorecard; explains the critical steps in implementing one; and shows how companies have applied scorecards to corporate advantage.
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