Philips's Balanced Scorecard Performance Measurement System

1259 WordsMay 12, 20166 Pages
Introduction Philips Electronics is a Netherland international company, which was founded by Gerard Philips and his father in 1891. It is one of the largest, successful and recognisable electronics company which manufactures a diverse product. Philips 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 includes three divisions: Philips consumer lifestyle, Philips Healthcare and Philips Lighting (Company profile, Philips, 2013). This report will discuss Philips’s balanced scorecard performance measurement system in different perspectives, which helps it plan and monitor performance, as well as grow and to maintain be a leader in this industry. 1. Overview of the Balanced Scorecard (BSC) Every organisation, in order to increase performance, profitability, efficiency and gain competitive advantage, needs a good strategic performance measurement systems to ensure that lower-level managers are acting in a way that is consistent with top managers’ goals and whole organisation’s strategy. One progressively 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

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