Interconnected Performance Measures across Four Perspectives PPT


This PPT slide, part of the 34-slide Balanced Scorecard PowerPoint presentation, presents a visual representation of how various measures from 4 distinct perspectives are interconnected and influence one another. The perspectives include Customer, Financial, Internal Business Processes, and Learning and Growth. Each perspective is depicted with specific metrics that illustrate their interdependencies.

Starting with the Customer perspective, Customer Satisfaction is highlighted as a critical measure. It has a positive correlation with Accounts Receivable, suggesting that higher customer satisfaction can lead to improved collection of receivables. Conversely, it negatively impacts Operating Expense, indicating that satisfied customers may lead to lower costs associated with service issues.

Moving to the Financial perspective, metrics such as Return on Capital Employed and Operating Expense are shown. The diagram indicates that an increase in Accounts Receivable positively affects Return on Capital Employed, while Operating Expense is negatively impacted by Customer Satisfaction. This suggests that financial performance is closely tied to customer perceptions and experiences.

The Internal Business Processes perspective includes Rework, which is negatively correlated with both Customer Satisfaction and Operating Expense. This implies that reducing rework can enhance customer satisfaction and lower operational costs.

Lastly, the Learning and Growth perspective emphasizes the importance of Employees' Suggestions. This metric is shown to have a negative relationship with Rework, suggesting that encouraging employee input can lead to fewer errors and improved processes.

Overall, this slide effectively illustrates the dynamic relationships between various performance measures, emphasizing the need for a holistic approach to management that considers multiple perspectives for optimal organizational performance.



This slide is part of the Balanced Scorecard PowerPoint presentation.

Designed by a firm of ex-consultants from McKinsey, E&Y, and Bearing Point, this presentation explains Kaplan and Norton's Balanced Scorecard, a classic framework on strategic management.

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Balanced Scorecard Strategy Deployment & Execution Customer Satisfaction Accounts Receivable

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