Balanced scorecard case study infosys
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Am i blue alice walker essay cover letter for job for structural engineer. It is a much wider term in terms of its application. An organisation must always strive to create efficiency across all verticals. It includes metrics like - what percentage of revenues are coming from new services, revenue per employee, etc. All these metrics help in measuring the efficiency. Read more on market share.
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Exclusive reliance on financial indicators encouraged behavior that sacrificed long-term value creation for short-term performance. The creation of the balanced scorecard in reflected the changing nature of technology and competitive advantage in the latter decades of the 20th Century. In the Industrial Age competition of the 19th and much of the 20th Centuries, companies achieved competitive advantage from their investment in and management of tangible assets such as inventory, property, plant, and equipment. In an economy dominated by tangible assets, financial measurements were adequate to record investments on companies' balance sheets.
Income statements could also capture the expenses associated with the use of these tangible assets to produce revenues and profits.
Infosys Relationship Scorecard: Measuring Transformational Partnerships Case Solution & Answer
But by the end of the 20th Century, intangible assets had become the major source for competitive advantage. Clearly, strategies had to change from managing tangible assets to those that leveraged the company's intangible assets, such as customer relationships, innovative products and services, high-quality and responsive operating processes, skills and knowledge of the workforce, the information technology that supports the workforce and links the firm to its customers and suppliers, and the organizational climate that encourages innovation, problem solving, and improvement.
But with companies not measuring their intangible assets, many failed in the implementation of their new strategies.