10 Apr '11, 10am

Metrics That Matter: How Quantifying Good Can Lead to a Better Bottom Line

Metrics That Matter: How Quantifying Good Can Lead to a Better Bottom Line

A common measurement system called the “balanced scorecard” was popularized by Harvard professors Robert Kaplan and David Norton during the 1990s, based on General Electric’s (NYSE: GE) performance management systems in the 1950s as well as early 20th-century French process engineers. This approach looks beyond mere financial profits, which tend to be lagging indicators of results that have already occurred. Kaplan’s and Norton’s Balanced Scorecard includes perspectives like “Customer,” “Process,” and “Learning” in addition to “Profit.” This typically produces a more comprehensive and proactive view of the business and requires “leading indicators.”

Full article: http://www.matternetwork.com/2011/4/metrics-matter-how-qu...

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