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The Balanced Scorecard A Foundation For The STR
The Balanced Scorecard A Foundation For The STR
Introduction
There are two reasons given for this paradox. First, it may be related to
how we measure productivity and profit. Many investments in IT provide
intangible benefits; ones that resist traditional measurement techniques. Second,
it is thought that the full potential of these improvements is not being realized
because business processes are not being changed to meet the changes in IT. In
other words, these improvements are underutilized.
The authors suggest that Kaplan and Nortons Balanced Scorecard (BSC)
approach can be modified to address the mismeasurement issue. The BSC has
been developed as a way to both communicate business strategy, as well as direct
attention to drivers of financial success. The traditional BSC divides performance
into four perspectives: financial, customer, internal process, and learning and
growth. The authors propose that the BSC can be revised so that it becomes a
useful way to measure IT project success. The following graphic illustrates the
balanced scorecard framework and the relationships between perspectives.
Evaluating business functions, departments and projects
This section also addresses ways to increase demand. This can be done by
finding new customers for existing services or providing additional services to
existing customers.(p.81)
Achieving a consensus
Cause and effect relationships should be well defined among the four
perspectives. Additionally, the measures should include a mix of both outcome
measures as well as performance drivers. These need to be linked to financial
measures.