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Balanced Approach to Business Systems |
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Customer Perspective
Customer's Perspective of Quality
Leveraging Service-Profit Chain
Financial Perspective
Learning and Growth Perspective
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Achieving Strategy through Balancing Competing Values The primary goal of any business is to increase stakeholder value. It is achieved through a dynamic balancing of competing values. In order for a business to maximize economic value, it must balance customer satisfaction and competitive market forces with internal cost and growth consideration. What is Business Systems Approach? A business is more than finance. Performance measures need to be aligned with the organization's strategy. The Business Systems approach considers business as system of interrelated factors of strategy, owners, investors, management, workers, finance, processes, products, suppliers, customers, and competitors. Organizations prosper by achieving strategy that is implemented as a result of continuous decision-making at all levels of the business. Firms implement strategy through balancing the four major factors or perspectives:
The four perspectives permit a balance between short-term and long-term objectives, between outcomes desired and the performance drivers of those outcomes, and between hard objective measures and soft subjective measures. Customer Perspective Customer is defined as anyone who receives that which is produced by the individual or organization that has value. A customer focus - as opposed to "customer driven" or "market driven", - both internal and external, implies that you don't just respond to what customers say they need and want, but you apply your own body of knowledge acquired from years of experience and study, in addition to your best knowledge of the customer, to deliver a product or service that will exceed customer expectations, achieve delighted customers and lead to customer success.1 Balanced Scorecard The Balanced Scorecard is a framework for designing a set of measures for activities chosen by you as being the key drivers of your business. By having four distinct perspectives (financial, customer, internal process and innovation and learning) it promotes a more holistic view of the business... More Results-based Leadership Results-based leadership has relentless emphasis on results in the four areas:
Delivering Balanced Results through Coaching Coaching brings more humanity into the workplace. "Effective coaching in the workplace delivers achievement, fulfillment and joy from which both the individual and organization benefit."4...More
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Bibliography:
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"The Basics of Leadership", Merlin Ricklefs, 2002
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"Balanced Scorecard In a Week", Mike Bourne and Pippa Bourne, 2000
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"Managing Complexity", Robin Wood, 2001
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"Effective Coaching", Myles Downey, 2003
