(Guys, ref ani kay Harvard Business Review na pdf) Balanced Scorecard – Norton and Kaplan, 1992 FOUR PERSPECTIVE:

1. Financial 2. Customer 3. Internal Business Process 4. Learning and Growth

Di siya new na concept, General Electric (Lewis,1995) General Electric Balanced Scorecard

1. Profitability Financial 2. Market Share Customer 3. Productivity

Internal Business Process 4. Product Leadership 5. Public Responsibility 6. Personnel Development Learning and Growth 7. Employee Attitudes 8. Balance between short-range and

long-range objectives Essence of Balanced Scorecard

Value of Intangible asset = Indirect Knowledge and Technology seldom has a direct relationship between revenue and profit Heskett et al 1994 development study is parallel to BSC

1. Investment in employee training lead to improvements in service quality 2. Better service quality leads to higher customer satisfaction 3. Higher customer satisfaction leads to increased customer loyalty 4. Increased customer loyalty leads to increased revenues and margin.

OBJECTIVES Financial

- high level objective for sustained shareholder value creation - supporting sub-objectives for revenue growth, productivity and risk management

Customer - desired customer outcomes (acquire, satisfy and retain targeted customers) - build the share of their spending done with the company

Internal Business - create and deliver the differentiated value proposition - meet the financial objectives for productivity improvements

Learning and Growth - goals for employees, information systems, and organization alignment.