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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? ObjectivesMeasuresTargetsInitiativesLEAR NING AND GROWTH To achieve our vision, how will we sustain our ability to change and improve?

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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