Database Reference
In-Depth Information
Translate the
strategy
Formulate
Rationalize and
align the organization
Testing hypothesis
adapting and learning
Executive teams manage
strategic themes
Comprehensive
communication
to create awareness
Strategic feedback
encourages
learning
Communicate
Navigate
Align goals
and incentives
Create knowledge
networks
Align resources
and initiatives
Execute
Reengineer
processes
Business execution system
Extended financials
Customer
management
Human resource
management
Supply-chain management
Figure 15.4
BSC Approach to create a Strategy-focused Company.
15.5.1 Financial Perspective
As mentioned earlier, the financial performance measures indicate whether a company's strategy,
implementation, and execution are translating into bottom-line financial results. Depending on
the business strategy, the financial objectives could be in terms of
◾
ROCE, economic value add (EVA) or operating income, and maintaining the market share
◾
Rapid sales growth and increased market share
◾
Maximize the generation of cash flow
15.5.2 Customer's Perspective
The customer's perspective mainly addresses the customer- and market-oriented strategies that
would deliver improved financial results. This involves the identification of the market segments
of interest, the value propositions for each of these segments, and the measures that would help in
ascertaining the performance of the company in the selected segments.
The basic outcome measures for this perspective could be
◾
Customer acquisition
◾
Customer satisfaction
◾
Customer retention
◾
Customer profitability
