CHAPTER SEVEN

ALIGNING BOARDS AND INVESTORS

IN PREVIOUS CHAPTERS, we discussed how Balanced Scorecards help to align and create synergies across internal business and support units (see the arrow at the left in Figure 7-1). With the increased emphasis on corporate governance, executives are now creating additional corporate value by using the Balanced Scorecard to enhance governance processes and to improve communication with shareholders (see the arrow at the right in Figure 7-1). As Jeff Immelt, CEO of General Electric, stated, “I want investors to know that they can trust us to govern our Company effectively. Then, they can judge GE by the quality of our business, our strategy, and our execution.”1

Effective governance, disclosure, and communication ...

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