The Balanced Scorecard Of A Company 's Vision And Strategy

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(1) Will the balanced scorecard be linked to any incentive plans? The balanced scorecard will be linked to incentive plans. The balanced scorecard is a set of financial and non-financial measures relating to the company’s mission, strategies, and critical success factors. It usually has four perspectives: the customer perspective - how do customers see us; the internal business perspective - what must we excel at; the innovation and learning perspective - can we continue to improve and create value; the financial perspective - how do we look to shareholders. These four perspectives generate performance measures to assess the progress of a company’s vision and strategy. Implementing incentive plans, like bonus plan, company can better align employee’s performance with its long-term goal. To be more specific, employees and management will devote more their energy and times to their work, so as to facilitate the performance in the above four perspectives. Sales person will promote company’s products based on customers’ preferences. Internal business person will work more efficiently, R&D department person will develop new products. Management will stay focused on the entire business process and ensure that the actual current operating performance is in line with shareholders’ interests. Thus the goal of balanced scorecard, maintaining an alignment among an organization’s vision, strategy, programs, measurements, and rewards, will be achieved. (2) What if a measure does not

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