MORE SUCCESSFUL BUSINESSES today are taking a lesson from the classroom of old, when examinations were the accepted norm for measuring performance.
Just as average grades are no longer enough to secure a student higher education, so too companies are expecting top marks in every facet of their business. Enter the concept of the Balanced Scorecard, a performance test based on the premise that, if you cannot measure it, you cannot manage it.
Francis Mok, management training and development manager at MTR Corporation, which uses the system, will explain the concept during a session tomorrow.
'Most business activities measure performance by focusing solely on their financial basis. The Balanced Scorecard complements financial measures of past performance with measures of the drivers of future performance,' he says.
The objectives and measures in the scorecard are derived from an organisation's vision and strategy.
Four perspectives - financial, customer, internal business process, and learning and growth - provide the scoring framework.