Wednesday, August 6, 2008
Analytics in Motio
The basic philosophy of the balanced scorecard is that people will focus on what you measure - more because it shows you care about it than because of financial incentives. Most organizations, when you look at their actual behaviors rather than their words, focus on a few financial measures, but that doesn't help them to improve their results, because if you tell your employees to increase shareholder value - what should they do? But if you know what determines shareholder value - high customer loyalty, high quality or low price products, etc. - then you have some ground to stand on, especially if you can work back to the key issues managers and employees should focus on
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