CHAPTER EIGHT
ALIGNING EXTERNAL PARTNERS
THE FINAL COMPONENT in an organization alignment program is for the enterprise to build scorecards with strategic external partners, such as key suppliers, customers, and alliances. When an enterprise builds a Balanced Scorecard with a strategic external partner, it enables the senior managers from the two entities to reach a consensus about the objectives for the relationship. The process creates understanding and trust across organizational boundaries, reduces transaction costs, and minimizes misalignment between the two parties.
The scorecard also provides an explicit contract by which interorganizational performance can be measured. Without a Balanced Scorecard, contracting with an external partner ...
Get Alignment: Using the Balanced Scorecard to Create Corporate Synergies now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
