Pbl Dhl Essay

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LEARNING ISSUES Balanced Score Card Balanced Score Card is a strategic planning and management system used to align business activities to the vision statement and strategy of an organization. It was originated by Drs. Robert Kaplan (Harvard Business School) and David Norton as a performance measurement framework that added strategic non-financial performance measures to traditional financial metrics. This would give managers and executives a more 'balanced' view of organizational performance. The balanced scorecard suggests that we view the organization from four perspectives which are a) Financial Perspectives b) Customer Perspectives c) Internal Business Perspectives d) Learning and Growth Perspectives [pic] Figure 1 : Perspectives of a balanced Scored Card Financial perspective - includes measures such as operating income, return on capital employed, and economic value added. Customer perspective - includes measures such as customer satisfaction, customer retention, and market share in target segments. Business process perspective - includes measures such as cost, throughput, and quality. These are for business processes such as procurement, production, and order fulfilment. Learning & growth perspective - includes measures such as employee satisfaction, employee retention, skill sets, etc. These four realms are dependent on each other. For an instance learning and growth lead to better business processes which in turn lead to increased value to the customer, which finally leads to improved financial status of an organisation. [pic] Figure 2 : Balanced Score Card Framework Each perspective of the Balanced Scorecard includes objectives, measures of objectives, target values of measures, and initiatives. Objectives - major objectives to be achieved, for example, profitable growth. Measures - the observable

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