Balanced Scorecards |
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Consistently mapping and analyzing key business figures
Efficiency goes beyond financial power
Prior to the acceptance and use of the balanced
scorecard concept in organizational management,
financial indicators such as revenue, profit, interest
and payments were being utilized.
At that time, the goal was to translate organizational
comprehendible measures and to institute new strategies
based on those measures.
Increasing economic pressures and the globalization
of markets have made it apparent that relying only
on financial indicators to identify organizational
changes taking place within short time periods, and
rapidly devising corresponding new strategies are
not always possible.
The changes taking place today in an organization
are reflected in tomorrow's financial indicators.
However, they do not convey information about
organizational activities, quality of production,
customer satisfaction, development of personnel or
innovation.
Yet, it is exactly such factors that affect the
competitive and financial status of organizations and
provide the fundamental clues for the future
strategies of the organization.
As an example, the credit rating system being
newly employed by banking institutions has made it clear that financial indicators alone are not
sufficient to measure credit worthiness, thus
proving that the use of "effective indicators" is much
more significant.
Balanced scorecards are especially useful for
medium-sized organizations in evaluating fundamental
criteria for organizational success and in focusing on
organizational goals. Being able to weigh the positive
and negative aspects of an organization and effectively
stating performance results aids in providing useful
future evaluations.
The balanced scorecard implementation within the
CANIAS ERP system provides an integrated tool that
ties fundamental aspects of the organization, such as
execution of business processes, motivation of
personnel, levels of innovation etc, to financial
indicators and allows these indicators to be utilized
within the organization.
It acts to serve as a bridge between business strategy
and the ongoing organizational activities, and is an
exceptionally useful system for the statement of
organizational strategies and their "measurement".
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