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Relevance: Hitting Your Goals by Knowing What Matters by David Apgar

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3

KNOWING WHAT MATTERS

Balanced scorecards were born to free those who use them. Yet everywhere their users lie in chains.

Balanced scorecards are supposed to simplify the manager's problem of knowing which possible performance measures matter. Robert Kaplan and David Norton introduced balanced scorecards to the public in 1992 and published their first book on the management tool in 1996.1 In addition to indicators measuring financial results, they recommend that organizations select indicators measuring performance from three other perspectives: customer satisfaction, the efficiency of internal processes, and learning and development. Since these last three perspectives give rise to leading indicators of performance, they balance the short-term ...

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