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    Balanced scorecard versus Economic Value Added: Best one?

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    Consider the following scenario:
    The organization that you work for has been thinking about implementing one of the following performance measures:

    Balanced Scorecard
    Economic Value Added

    It has asked you to prepare a summary and make a recommendation as to what performance measure should be used.

    444 words

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    Solution Preview

    Both of these are ways of evaluating or monitoring performance.

    The first, the balanced scorecard, is a particular dashboard of measures that is sorted into categories that are supposed to give a view of leading and lagging measures of success (both hard and soft measures). These categories create the "balance" in that the assortment of measures do not permit one aspect of the business to dominate performance at the expense of another. Performance is based on doing well across a range of areas. The authors of the Balanced Scorecard suggest four categories (financial, customer, internal business process and learning & growth) that should include measures selected based on ...

    Solution Summary

    In everyday language, this 444 word discussion compares and contrasts these two performance measures and indicates the most powerful one and why. Suitable for novice to expert.