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The results of this focus on the financial perspective?

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Many companies place disproportionate emphasis on the financial perspective at the expense of the other three perspectives. Give an example of an organization which you are familiar with where this has been the case. What were the results of this focus on the financial perspective, the customers and other stakeholders?

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Solution Summary

Your tutorial is 356 words and tells of two managers who mis-managed because of over-emphasis on financial measures.

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When I worked for National Linen, the performance was measured by financial indicators with little or no importance given to the other perspectives. This resulted in managers using ?trial and error? to try to figure out what the leading indicators for performance were and what the cause and effect relationships might be. It also led to managers ignoring the strategic initiatives if they could not ?see? the connection between the initiatives and the financial results.

For example, ...

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