By Marshall W. Meyer
Functionality dimension is still a vexing challenge for enterprise enterprises and other forms of agencies. The ''balanced scorecard'', extensively touted as an answer to difficulties of functionality dimension and strategic making plans, has no robust foundation in concept. in addition, implementation of the ''balanced scorecard'' could create many extra difficulties than it solves. this article returns to the basics through asking what's the functionality of the enterprise, can this functionality be measured, and what are moderate second-best measures if the first-best measures we want to have should not available
Explains why: the functionality we wish to degree (long-term money flows, long term viability) and the functionality we will be able to degree (current funds flows, shopper delight, etc.) should not an identical. Why are functionality measures so undesirable? -- working down of functionality measures -- looking for stability -- From price drivers to profit drivers -- studying from ABPA -- coping with and strategizing with ABPA
Read or Download Rethinking performance measurement : beyond the balanced scorecard PDF
Similar strategy & competition books
In a networked international that is characterised through interactive worth production, conventional organizational obstacles unfastened value in want of tactics of dispensed organizing. consequently, puzzling over and designing companies calls for going past designing hierarchical constructions and tactics ex-ante, yet developing structures bearing in mind discovering adaptive suggestions ex-post.
Strategic common sense lays the rules for a transparent figuring out of company profitability and gives the reader with cutting edge insights on find out how to improve unique but sensible ideas. operating with real-life examples and according to rigorous thought, the writer analyses key managerial judgements and indicates find out how to be sure those increase the company's long term profitability.
The Intoxication of strength is a set of contributions via 13 authors from a variety of educational disciplines sharing a priority for the advance of figuring out of the character and origins of management hubris. The ebook originated at meetings held by means of the Daedalus belief, which fosters examine into demanding situations to organizational health and wellbeing.
The worldwide phenomenon that has bought three. five million copies, is released in a record-breaking forty three languages and is a bestseller throughout 5 continentsnow up to date and multiplied with new content material. This international bestseller, embraced via companies and industries around the globe, demanding situations every thing you idea you knew concerning the specifications for strategic good fortune.
- Competitiveness of Chinese Firms: West Meets East
- Business Networks: Strategy and Structure
- The Timeless Principles of Successful Business Strategy
- Innovation And Strategy Of Online Games (Technology Management)
- The New How: Creating Business Solutions Through Collaborative Strategy
Extra info for Rethinking performance measurement : beyond the balanced scorecard
Given the endemic deﬁciencies of everyday performance measures – more on these deﬁciencies below – my concern is how they can be overcome, if only partially. Rethinking and simplifying the organization 22 Rethinking Performance Measurement and its environment can remedy some of these deﬁciencies but not all of them. And no amount of rethinking and simpliﬁcation will allow us to measure economic performance directly. This holds whether economic performance is construed narrowly as “cash ﬂow still to come” or broadly as the long-term efﬁciency and viability of the organization.
Whether the same strategy of treating costs and revenues as independent events – in the vernacular, cut costs on the one hand and drive revenues on the other – will work going forward is uncertain. The problem is not intent: when managers must cut costs, they seek to cut expenditures not contributing to revenues. The problem, rather, is that, absent analytic tools linking expenditures to revenues, the wrong costs are often cut. These analytic tools require a great deal of data, ideally data capturing all of the activities performed by the ﬁrm.
26 Business models of performance In order to place non-ﬁnancial measures on an equal footing with ﬁnancial measures, ﬁrms have had to construct business models sketching plausible linkages between ﬁnancial and non-ﬁnancial performance. 27 Business models of performance need not be circular Why are performance measures so bad? 43 as in this instance but may, instead, may be sequential and terminate with an outcome state such as shareholder value. Whether circular or sequential, business models usually specify relationships among constructs such as product quality and customer satisfaction.