Philips's Balanced Scorecard Performance Measurement System

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Philips Electronics is an international company based in Netherland. The company was founded in 1891 by Gerard Philips and his father. It is one of the world largest, successful and recognisable electronics companies. Philips manufactures a diverse range of products and is “a leader in cardiac care, acute care and home healthcare, energy-efficient lighting solutions and new lighting applications, as well as male shaving and grooming and oral healthcare”. Today Philips organisational structure consists of three divisions: Consumer lifestyle, Healthcare and Lighting (Company profile, Philips, 2013). This report discusses Philips’s balanced scorecard performance measurement system from different perspectives. This system helps to plan and monitor organisational performance to grow and maintain its leadership position. Organisations, in order to increase performance, profitability, efficiency and to gain a competitive advantage, will benefit from a good strategic performance measurement system to ensure that lower-level managers are acting in a way that is consistent with top managers’ goals and whole organisation’s strategy. One the dominant system is the balanced scorecard framework (Hill, Jones & Schilling, 2015, p.376). The Balanced Scorecard (BSC) defined as “a tool that translates an organisation’s mission, objectives and strategies into performance measures. It is used to implement strategy and to monitor and manage performance, and may form part of the

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