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The BALANCED SCORECARD

1 1999 The BALANCED SCORECARD Collaborative and Robert S. Kaplan. All rights S. KaplanHarvard Business SchoolTheBALANCEDSCORECARD2 1999 The BALANCED SCORECARD Collaborative and Robert S. Kaplan. All rights Is a BALANCED SCORECARD ?A Measurement A Measurement System?System?A Management A Management System?System?A Management A Management Philosophy?Philosophy?3 1999 The BALANCED SCORECARD Collaborative and Robert S. Kaplan. All rights Vision and Strategy: Four PerspectivesVision andStrategyObjectivesMeasuresTargetsInit iativesFINANCIAL To succeed financially, how should we appear to our shareholders?

The Balanced Scorecard Focuses on Factors that Create Long-Term Value • Traditional financial reports look backward – Reflect only the past: spending incurred and revenues earned – Do not measure creation or destruction of future economic value • The Balanced Scorecard identifies the factors that create long-term economic

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