Contents
Why is financial perspective important?
The financial perspective is recognized for the importance of short-term financial results obtained from the analysis of financial targets for institutions in the competitive environment (Kaplan and Norton, 2000: pp. 9-15). They can be different at each stage of development of the company’s activity.
What is customer perspective in balanced scorecard?
The theory behind the Balanced Scorecard customer perspective is that you have to make your customers happy to sell them products and services—and in order to make your customers happy, you have to understand them.
What is customer’s perspective?
Customer Perspective – Customer perspective measures consider the organization’s performance through the eyes of its customers, so that the organization retains a careful focus on customer needs and satisfaction.
What is a customer perspective?
What are the goals of a financial perspective?
Financial perspective. Under the financial perspective, the goal of a company is to ensure that it earns a return on the investments made and manages key risks involved in running the business. The goals can be achieved by satisfying the needs of all players involved with the business, such as the shareholders.
Why does a business need a finance perspective?
The idea is that businesses by definition work to get financial outcomes (the non-profit case was discussed separately) that leads to the need for the Finance perspective. The financial outcomes are the result of solving customer´s problems, which is the reason to have the Customer perspective.
Where is the financial perspective on a scorecard?
Because the financial perspective still remains at the top of most for-profit scorecards (and at or near the top of most non-profit and government scorecards), it’s important to be sure the objectives and measures you’re using in this perspective will truly tell you whether your strategy will contribute the growth you are looking for.
Which is the best perspective of a company?
1. Financial perspective. Under the financial perspective, the goal of a company is to ensure that it earns a return on the investments made and manages key risks involved in running the business. The goals can be achieved by satisfying the needs of all players involved with the business, such as the shareholders.