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Definition of

balanced scorecard approach

General Management

emphasis on providing management with strategic information an approach to the provision of information to management in order to assist strategic policy formulation and implementation to build the long-term value of the business. It emphasizes the need to provide the user with information that addresses all relevant areas of performance in an objective and unbiased fashion. The information provided may include financial and non-financial items and cover areas such as profitability, customer satisfaction, internal efficiency, and innovation. The term originates from the best-selling business book, The Balanced Scorecard, written by Robert Kaplan and David Norton and published by Harvard Business School Press in 1996. Their approach applies the concept of shareholder value analysis, and is based on the premise that the traditional measures used by managers to see how well their organizations are performing, such as business ratios, productivity, unit costs, growth, and profitability, are only a part of the picture. Traditional measures are seen as providing a narrowly focused snapshot of how an organization performed in the past, and give little indication of likely future performance. In contrast, the balanced scorecard offers a measurement and management system that links strategic objectives to comprehensive performance indicators.

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Definitions of ’balanced scorecard approach’ and meaning of ’balanced scorecard approach’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’balanced scorecard approach’ and other financial terms with our online QFINANCE Financial Dictionary.

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