Balanced Scorecard
...derstand the cause-effect relationships between them and the achievement of its strategic goals. This requires system thinking from those at the top and bottom of the organization. In other words, the organization is force to think through the logic of how things are functionally inter-related. To facilitate this, communication is important so that everyone gets a good understanding of the overall strategic goals of the organization and its rationale. Next, the strategic business units need to be aligned as well as the goals of the employees. The compensation and reward system also needs to be aligned with the financial resources. The scorecard is not meant to replace the traditional financial measure but to act as a supplement to those measure in terms of adding four additional areas which are customers, internal business processes, learning and growth and financial. ...