The Balanced Score Card: Philips Electronics – Article Example
The paper "The Balanced Score Card: Philips Electronics" is a great example of a business article review.
Philips Electronics has employed a scorecard system in order to align the companies objectives, concentrate on employees on how they could contribute to the objective, and educate employees on how they could move the business altogether. The company’s use of a balanced scorecard is rooted from the belief that learning about the “lead measures” through performance is a basis for determining future results (lag measures). The company uses the scorecard to allow its employees to understand strategic policies and visions for the future; an innovative way to track the status of the company’s performance as a collective review of every employee’s performance measures. The article identifies four (4) critical success factors (CSFs) “to align indicators that measure markets, operations, and laboratories with business success. The four CSFs are the following: (1) competence (2) processes (3) customers and (4) Financial. The company includes these critical success factors to its balanced scorecard to allow employees to relate or connect their actions to the company goals. The balanced scorecard is more of increasing accountability over the results.
The information presented in the article shows a comprehensive account of how the company uses the balanced scorecard in order to properly and systematically perceive the entirety of the company: objectives, prospective outcomes, performance measures, employees’ performance, and critical success factors among others. These key information are equivalent to a complete description on the company’s status because (1) it allows for an integrated analysis of Philip’s future by looking at the driving factors and (2) it provides an easier way for executives to track the business enterprise and for employees to figure out what they could change or improve on in order to contribute to the company’s overall goal.