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    Balanced Scorecard and Economic Value Added

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    The organization that you work for has been thinking about implementing one of the items below and they have asked you to prepare a summary of these topics.

    Balanced Scorecard
    Economic Value Added
    Describe the contrast and identify common themes among each of these concepts.

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    A performance metric used in strategic management to identify and improve various internal functions and their resulting external outcomes. The balanced scorecard attempts to measure and provide feedback to organizations in order to assist in implementing strategies and objectives.

    The scorecard seeks to measure a business from the following perspectives:

    * Financial perspective - measures reflecting financial performance, for example number of debtors, cash flow or return on investment.
    * Customer perspective - measures having a direct impact on customers, for example time taken to process a phone call, results of customer surveys, number of complaints or competitive rankings.
    * Business process perspective - measures reflecting the performance of key business processes, for example the time spent prospecting, number of units that required rework or process cost.
    * Learning and growth perspective - measures describing the companies learning curve, for example number of employee suggestions or total hours spent on staff training.

    The specific measures within each of the perspectives will be chosen to reflect the drivers of the particular business. The method can facilitate the ...

    Solution Summary

    This explains the Balanced Scorecard and Economic Value Added concepts in detail