Balanced Scorecard Introduction

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The balance scorecard introduction lecture
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The balance scorecard is one of the tactical management techniques that the introduction is becoming animated in the public organization and at the hospital and so on, too, including the company.
The individual let's introduce the basic structure.
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The mechanism of the all directions type tactical management system - the balance scorecard
The balance scorecard is the tactical management system which debit P. Norton in the consulting company invented with the Robert Sarah Caplan professor of the Harvard Business School professor.
The characteristic of this business strategy technique is the point which balance well adopts the 4 corner viewpoint which consists of financial viewpoint, the viewpoint of the customer, the viewpoint of the business process, the viewpoint of the learning and the growth and does a performance evaluating by the scorecard.
By the evaluation which consists of 4 corner index, it grasps a goal and the gap of the achievement fitting at the value.
The 2 corner viewpoint of the financial accounting and the customer is the category which is based on the viewpoint of the stake folder.
The financial strategies aims at the maximization of the cash flow in the harvest, aiming at the profitability in the lasting period, aiming at the germinancy in the growing period of the business.
There are a ① market share, a ② customer fixed rate, a ③ new customer fixed rate, ④ customer satisfaction, a profit, evaluation index according to the ⑤ customer in the viewpoint of the customer.
It evaluates the business process which is best to give the customer and the stockholder a value ( the value ) in the viewpoint of the inner business process and to achieve a strategic objective.
Generally, it is evaluated at the quality, the cost, the appointed date of delivery, the new product introduction percentage and so on.
The viewpoint of the learning and the growth means the basis which is necessary for the long-term growth of the organization.
① Human resources, a ② IT system, a ③ motivation and an empowerment ( the delegation of power ), are made.
By making a management policy and an evaluation index clear, evaluate management in the 4 corner viewpoint that a balance was taken, it coordinates an organization hierarchically and the balance scorecard which does management tactically can be called the strategy management technique of all directions type.
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The strategy mapping by the balance scorecard
The strategy mapping is the indispensable tool to use a balance scorecard.
The strategy mapping is the viewpoint of the learning of ① human resources and the growth if saying by a word.
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② The viewpoint of the inner business process
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③ The viewpoint of the customer
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④ It is to go along in turn and that the scenario of the strategy of the management reform is composed of the flow which is a financial viewpoint.
As for the financial viewpoint, to be evaluated at the value which appears at the financial statement as the result of the business performance, it is possible to be both in the viewpoint in the past.
It is possible to be with the present viewpoint, too, about the customer, the inner business process.
The viewpoint of the learning and the growth can be called a viewpoint in the future, too, from the implication, the upbringing of the human resources, the reinforcement of the ability to reform.
When looking at the 4 corner viewpoint by the temporal axes in this way, as for the zone in the time which each viewpoint belongs to, it will find the fact to be different.
If comparing strategy mapping by the play of the golf, a 4 corner viewpoint is called the hall which should reach.
A wide range of faults are waiting by reaching each hall.
The basic structure of the strategy mapping is composed of ① strategic-target (KGI:Key Goal Indicator), ② important enabler (CSF:Critical Success Factor), ③ important evaluation index ( the performance evaluating index: KPI:Key Performance Indicator ), ④ target ( the specific target-number value of KPI ), ⑤ action plan ( the execution concrete plan ) to each of the 4 corner viewpoints.
It links the various factor which composes a 4 corner viewpoint by the arrow in the connection, the cause and the result.
As a result, the mapping to have finished putting together from the tactical viewpoint is complete.
The balance scorecard in the management top becomes a hierarchical structure as if to do a balance scorecard with operating department length, to do the balance scorecard of the group leader, to do the balance scorecard of the general staff and breaking down
With this mechanism, as for the strategy mapping by the whole company, the consistence can be secured about all organization hierarchies.
It is the meaning which can prevent gap's occurring to the strategy among the hierarchies and reform vector's becoming apart.
The author names this a pyramid vector.
The balance scorecard is the business strategy technique of the strategy management which is useful for the performance evaluating, working out a management strategy.
It shows the power to be outstanding in to the business management.
The point to narrow down these viewpoints to the 4 corner all directions type and for " the 4 eyes Lev management " to be able to be practiced is a reason for giving off the blaze of the existence value.
The single-lens reflex camera very provides the good clear photograph of the deterioration.
The balance scorecard is the one management and which can be well seen wonderfully, boiling as it is possible to say " the 4 eyes Lev camera " which gathered four single-lens reflex cameras.
Why will it be a financial viewpoint?
If the company doesn't make a profit even if it sends the product which is excellent in much using the money in the world, it has failed in time.
The financial basis is sound and to win the confidence of the capital market is the absolute condition of the company continuation.
In the meaning, the balance scorecard adopts a financial viewpoint.
Next, why will it be the viewpoint of the customer?
The customer shoulders without turning in the seeing, too, to the product where the convenience is bad and the product where the after-sale service is bad even if the performance and the feature are excellent and have the good design of the much advantage.
It is a point by whether or not the customer can be gotten by buying at the proper price by this place's making the product concept which matches the needs of the customer clear.
As for the viewpoint of the customer, it asks the existence value of the business activity.
How will it be therefore to the viewpoint of the business process which is the 3rd viewpoint?
As for the business process, it is equipped with the factor which influences the level of the product and " the quality ", " the cost " and " the appointed date of delivery " of the service.
These 3 corner factors can be called the absolute condition of the manufacturing, but when either one level falls, the product and the service can meet the needs of the customer and pass away.
The viewpoint of the learning which is the 4th viewpoint and the growth concerns the quality of the human resources which compose corporate organization.
There can be human resources when to bring up excellent human resources by the repeat of histological 習 to be called person property, too, influences the perpetuity of the company, too.
The balance scorecard 4 corner viewpoint differs in the zone of the temporal axes.
For example, the financial viewpoint can be called a viewpoint in the past as the result of the business performance to be evaluated at the management value like the financial statement.
The customer, the business process are one to the activity condition of the present progressive and can be called the present viewpoint.
This place analyzes a customer, a market, competition and inventing a best business process by it
It attempts to bring up human resources and to strengthen the ability to reform and the viewpoint of the learning and the growth can be called a viewpoint in the future.
Among these 4 corner viewpoints, it is equipped with the past, all temporal axeses which consist of the future at present and it has the characteristic that it is possible to do a performance evaluating balance well without the overlook.
For example, here, as the 5th new viewpoint, the viewpoint of the risk and the viewpoint of the environment can be added, too.
The business management which can do the control that a balance was taken by this place's adding a best viewpoint according to the characteristic and the description of business of the company can be realized.
In the balance scorecard, it uses so-called KPI(Key Performance Indicator) for the performance evaluating index.
KGI evaluates the maximum goal of the management in the company at the value.
" Achievement with 10 % of profitability ", Exhibited to the capital market as the target-number value of the management as if to do " the definite achievement with twice of proceeds "
KPI subdivides in detail as the performance evaluating index in the specific action plan to achieve KGI.
It is the one which can be called the monitoring parameter of the management.
KPI sets a wide range of ones to each while it makes have a consistence mutually in the 4 corner viewpoint.
The achievement of KGI must be led to as those amounts.
It checks to be proportional to the proceeds and whether or not the profitability, too, is improved in KPI of the financial viewpoint or whether or not it declines.
Every month, which degree, it monitors whether or not it clears to be changing to the target value or whether or not it is aggravated.
KPI makes the value that the result of the practice of the reform was invented the form which the eyes can see.
It is charged with a role of the monitoring ( the watch ) which evaluates a value and a level at the value in the time series using the managing viewpoint.
As for the contents of KGI, according to the change of the progress condition of the business reform and the status, the business environment of the competition, every time , the orbit correction hangs.
It accompanies to that and it reconsiders and the correction, and the new setting, the reorganization become need next to the inevitability, in the action plan and KPI ( Key Performance Indicator: the performance evaluating index ) in the change of the strategy.
That is, the reconsideration of the companywide balance scorecard is done and the changing clothes of the frame of the performance evaluating is done.
KPI can get a big harvest as the company if it can be achieved when setting a target value high.
However, when setting the overstretching oneself target value as it doesn't correspond with the ability of the company to KPI, in some cases, the company crashes.
For example, there is a case that the staff does that the sales are dilute to achieve exorbitant sales Norma well.
In this way, KPI of becoming the sword of the double edge, too, very is the tool of the monitoring ( the watch ) of naive management.
When reviewing what level to decide the value on, in addition to gap analysis of the competition and the company, to ascertain the level of the acceptance power and the true ability of the company well from a wide range of angles under the enough adjustment among the related departments is important about as what index to choose KPI.
It is necessary to check whether or not it is possible not to choose the achievement index that it is possible to really master the performance evaluating index (KPI) to have incorporated into the balance scorecard on the scene or whether or not it doesn't get not to be in the meaning as the business environmental-variation can not be supported, too.
For example, if the performance of the competition improves, it accompanies to that and the reconsideration of KPI becomes need.
Or, if KGI is changed, the correction orbit of KPI is necessary at the same time.
With to call the specific promotion index to achieve KGI, too, being possible, it is in the relation of the parent and child with KPI.
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KGI, KPI, CSF about the balance scorecard
The evaluation index of the goal attainment level when proceeding with the management reform includes two of KGI ( Key Goal Indicator: the management final-result index ) and KPI ( Key Performance Indicator: the performance evaluating index ).
For example, KGI is the management goal of which it is possible to say the last goal of the finance as it said that it wanted to expand the sales of the 3 years after company by 3 times, too.
It is the management index which is indispensable because of the embodiment of the companywide management policy.
KPI can be called the child of KGI, too.
It is the index to evaluate whether or not to receive the looking forward to it of KGI which is parents and in the specifically to realize it how needed cut end it should achieve it by the specific action.
For example, A let's suppose that it asks when he resembles in the high pay taking that the income of the professional baseball player with over a hundred million yen annual income can be secured, becoming the director of the company which is excellent about its child B you as the parents and is wished to become.
This becomes KGI of A and is the strategic-target of the last goal.
To get a job in the excellent company, it sends to an excellent school and it puts a tutor, it is possible to mean a wide range of lessons and the showing supposes that it does a westerly wind if it is not within the 3rd in the class of the school.
This becomes KPI.
The actions which send to a school which is excellent to get a job in the excellent company here and put a tutor and can mean a wide range of lessons are so-called action plan.
As for the important enabler in this place, the fact whether or not it is possible to make a child get a job in the first-class company corresponds.
The one of KPI of KGI which bridges is important enabler (CSF).
Because the outsider can evaluate objectively at the specific value, KGI, KPI are charged with a role of the feature of the monitoring ( the watch, the evaluation ) in case of working-out of a management strategy.
The scorecard which consists of the 3 corner combination of KGI, CSF, KPI here must be created to each of the 4 corners of the financial viewpoint, the viewpoint of the customer, the viewpoint of the inner business process, the viewpoint of the learning and the growth.
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The balance scorecard and Titanic, KPI
The point which should be the most careful in the utilization of the balance scorecard is in the design of performance evaluating index KPI.
The crash of the executive officers who fell into one piece of efficiency management is well attended by the accident of the recent major company, ignoring the actual state of the scene and the capacity of the scene in case of setting of this KPI.
It practices the business activity which aims at doing best with the whole but the balance scorecard has the risky side to have made the management policy that the top was wrong penetrate companywide.
Because, the company is in case of the middle, the person in charge in the scene, employee's boiling a balance scorecard by the coxswain of the gigantic warship from the management top because it is the one which forms a pyramid vector, becoming a cluster and failing because the direction can not have been advanced towards.
When the worst, it doesn't limit when not falling into the traged of Titanic which conflicts with the iceberg, too.
KPI is the starboard which affects fate of the gigantic warship and is a conning tower.
It sets KPI with the high level as it forces on the scene and in the organization which forces the definite achievement of the excessive action plan, the quality problem and the safe accident problem and moreover the recall problem tend to occur frequently.
When the capacity of the scene employee who is in the front line of the active conduct of business reaches a limit by the lash of the improvement of the persistence business expansion and the productivity and the profitability which depends on the top, the organization structure is because it falls into the insufficiency.
Here, the convenient bad information is the one which has fallen into the situation that the organization highest level panics with the thing becoming big and being detected, bringing about the delay of the feedback action, not flowing, being good stagnant among the organizations.
The history is proving that there was a malady in Roman Empire's aiming to conquer the world ever and repeating the expedition of the imperial globalization about the soldier and that it became the remote cause of the collapse of the Roman Empire.
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The vision and the strategy become a momentum.
In the first step of the business reform, it utilizes the technique of the balance scorecard and it makes the policy of the corporate strategy which is the optimal for the whole, a vision and a performance evaluating index clear.
In the business management, the definite vision and the strategy will not be exaggerated even if it says that they are charged with a role of the compass and that they decide that the company sinks and floats.
If the management top can not show a definite vision, and a management strategy, business strategy to the employee, the executive and the employee who is engaged in the business activity in the front line in the scene go this way and that.
The vector of the business activity turns to the apart direction in each department and the regulation passes away in the coming-off, and the waste and the loss of the management resource occur and the business management traces a way of declining.
In the balance scorecard, the setting of a definite vision and strategy is in the placing in the executive ability development of the company, the momentum.
The vision and the strategy will be able to be compared to the navigator at the car.
If saying this definite vision with the navigator of the car, it takes on inputting an address in the spot of the reaching by the destination.
In the strategy, it makes the fact by what approach to be realized clear.
It reviews basic policies such as wanting to go while enjoying the feelings of the travel which was slowly while going to bed as expected with the Superexpress without using a car about whether or not it goes with the private car.
By which of the car and the Superexpress to choose, the contents which should prepare a thing, too, are different roughly.
Possible about being exposed to the crisis of the life or death in some cases, too, in the business management of the business environment in being intense when the strategy makes a bad choice of the approach
Moreover, the strategy must spread out to the action plan as the specific execution plan.
The computation of the distance which arrives at the destination, the quantity and the required time of necessary gasoline, the securing ( or, are the confirmation of the service area on the way ) of a food and the various preparation and so on must be made clear beforehand.
For example, gasoline must decide things such as whether it is the cash payment OBJ DO or whether or not to pay with the credit card about whether or not to find the gas station of the self service and how to procure is inexpensively purveyed by it.
Such a specific action plan becomes in the thing boiling which is called tactic.
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The one which the 4 corner viewpoint means
In the viewpoint of the customer, the company pursues the improvement of the in-house product and the market share ( the market share ), the customer fixed rate, the new customer wining percentage to the service, the profitability according to the customer according to the product and so on in the business management.
The existence value of IT system about the business management is about to resemble about whether or not IT system can show the ability sufficiently as the management support tool to realize the improvement of these performance evaluating indexes (KPI:Key Performance Indicator).
It is possible to call the one to have expressed the management needs of the company in KPI with the viewpoint of the customer.
In the viewpoint of the financial accounting, IT system which aimed at the improvement of the germinancy and the profitability, the cash flow of the business of the company must be built.
Here, management final-result index (KGI:Key Goal In dicator) is set.
To make achieve a goal index about above mentioned customer, the financial accounting, the company does in the focus to the inner business process and attempts to improve and to reform a business process.
This place becomes a management point with quality, cost and appointed date of delivery in case of the product and service and the main introduction percentage of the new product and so on.
In the viewpoint of the learning and the growth, it attempts the human resources development which becomes the nucleus of the management resource.
Here, IT system is charged with a role which promotes the sharing of the information and the know-how.
To improve learning effect as the organization and to aim to grow, it improves the motivation of the human resources which compose an organization and it is possible to say that that the corporate culture that it is possible to appreciate worth doing and the sense of achievement to the business in the date is caused is indispensable.
Moreover, to make show the potentiality of the young people member by the mechanism of the empowerment and to take to the condition which was activated as the organization are indispensable for the business growth.
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The SWOT analysis to grasp a management resource and business environment, being general
In the tactical approach by the balance scorecard, the use of the SWOT analysis is valid.
The business-opportunity which utilized the advantage of the company explores what it is and it reviews whether or not it isn't possible to evade a menace by the advantage of the company.
Also, the strategy which takes advantage of opportunity and converts a weak point into the advantage can be reviewed.
Moreover, the menace and the weak point elaborate the plan to avoid of the risk which becomes come across.
In this way, in the management strategy working-out, the SWOT analysis is an indispensable technique when attempting the best utilization of the management resource to have supported a business environmental-variation.
☆ It makes a home plan by the balance scorecard!
The thing boiling which is useful for the brain training includes a wide range of ones such as the logical sinking and the mind map.
It will be possible to say that these are an excellent tool but that they have a weak side to invent systematical strategy from there.
The balance scorecard is the business strategy technique which Robert Sarah Caplan in Harvard Business School developed but if mastering together with the SWOT analysis which is the technique of the environment analysis, it can improve strategy consideration leaping-ly.
Saying " the constant change of the whole creation ", as for Herakleitos which is a philosopher in advocated ancient Greece, the principle which dominates order in the this world is a battle and conflict and the essence of the things is being called to prefer that it is possible to be mumbling, too.
The business is about to be able to invent a business environmental-variation and the idea which can overcome competition how or to boil them.
If an idea isn't visualized, it doesn't have a force and it can not execute wisdom of the many as the strategy by gathering it.
The balance scorecard has the wonderful feature which fits the visualization of the strategy.
Moreover, it becomes the strategy tool only in addition to the working-out of business strategy which shows an excellent effect in case of life design and reconsideration of the lifestyle, too.
Will a home plan seem able to be worked by the balance scorecard?
The answer is YES.
In the balance scorecard, it makes four boiling viewpoints which consist of financial viewpoint, the viewpoint of the customer, the viewpoint of the business process, the viewpoint of the learning and the growth in the focus and it works out a strategy.
The partner concerns the viewpoint of the customer.
The fund plan is a financial viewpoint.
The thing search is the viewpoint of the business process.
The acquaintance and the information to get from the acreage estate company concern the viewpoint of the learning and the growth.
Here, in these 4 corner viewpoints, each, it is KGI( final goal: KEY.
GOAL　INDICATOR
As the parameter which evaluates the action plan to achieve , KPI ( the performance evaluating index: KEY PERFORMANCE INDICATOR ) must be set.
With the step which corresponds to C(CHECK) of PDCA(PLAN､DO､CHECK､ACTION), KPI shows an effect.
In this way, the balance scorecard becomes the strategy consideration tool which is useful for the life design and the changing of the lifestyle.
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The approach by the balance scorecard and CRM
The penetration to the customer consumption process
The mass marketing in the conventional product center becomes outdated.
It enters in the times when the conversion into relationship marketing (CRM) and the one-to-one marketing in the customer center decides the success or failure of the business.
The reinforcement of individual compatible and the relationship of mutual trust to the customer becomes the important issue of the marketing.
To build close relationship of mutual trust with the customer by aiming at the segment needs of the specific customer and digging, developing and providing the product and the service which was fitted to the needs is important in CRM.
By entering into the consumption process of the customer deeply, it is possible to have a point of tact to the lifetime value ( the lifetime value ) of the customer.
To maximize a customer value on the channel of the point of tact with the customer, with the statistical analysis technique, to analyze the buying behavior of the customer thoroughly becomes a point.
The approach to the customer royal tea improvement
Moreover, a marketing-activities for the royal tea improvement is required to the customer.
In case of practice of CRM, the expansion of the pioneering of a new customer, the dealings with the existence customer and the maintenance are necessary.
For the existence customer, an approach by the upgrade which raises an already bought product and the frequency and the level of the service is often used.
Also, it is effective when using the technique of the cross ceiling which sells an already bought product and the other product which is related with the service, too.
Specifically, in the maintenance of the existence customer, the ascertainment of the life cycle value of the existence customer is important and the prospect of the profitability to have taken account of a maintenance cost must be carefully estimated.
To utilize the scientific analytical method which depends on the dater warehouse for the analysis of the customer action and the buying behavior pattern discovery is effective.
Moreover, in case of collection of the buying behavior dater of the customer, it is necessary to add information from the various data channels.
For example, the call center which is a point of tact with the customer, a credit card, a Web site, a cell phone, a salesperson and so on are raised.
As the information system composition of CRM, generally, it consists of the 3 corner element of the front office which covers a point of tact with the customer, the customer database management and the middle office which takes charge of data analysis management and then the backoffice which covers a business dater.
The fusing of CRM and KM
As the direction of the future, the system form of the fusing of CRM and KM ( the knowledge management ) will become important.
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The viewpoint of the business process about the balance scorecard, and TOC, SCM
TOC, SCM are the leading figure of the management technique which penetrates all the industry including the manufacturing, the distribution industry.
SCM ( the supply chain management ) manages the flow of goods about the supply activity, the flow of the information, flow with cache by Kazumoto beyond the fence out of the in-house, being best in participation B to B as the value chain.
To convert into the cash flow management, as the influential tactical business management technique, it is being bathed in the footlights.
The approach by SCM ( the supply chain management ) lies in discovering the bottleneck which is the factor which obstructs the whole efficiency in the business activity, inflicting improvement and building the mechanism which does the synchronization of all the value chains, a speed-up beyond the frame of B to B during the department.
While attempting seamless of the information on the business activity by this, reduction of the abridgment, the inventory reduction, the sale opportunity loss of the total lead time and the maximization of the cash flow can be aimed at.
Let's touch beforehand about TOC(THEORY OF CONSTRAINTS), too.
Eliyahu Goldratt in Israel proposed this theory and was bathed in the leaping footlights by the explanation of the novel making by " the goal " which is the book.
Each company which is the member which composes the supply chain first, when micro- attending, it discovers the bottleneck as it has lowered the supply speed of the whole supply chain which is obstructing synchronization among the process chains about the department or the manufacturing process.
Then, it makes the level of the neck synchronize all process chains.
Next, it improves a bottleneck.
It is the theory to repeat these steps and to attempt the best speeding of the whole process chain.
Management in general can be applied to when extending and taking a neck.
In the supply chain theory ( Michael Eleanor Porter proposes ) which compared business activity, production activities to the chain of the chain, the activity of the component in this place is equivalent to the chain and the throughput corresponds to the strength of the chain.
The strength of the whole chain of the business activity, the production activities is the strength of the weakest part and is decided.
That is, the increase of throughput lies in attempting to discover, to strengthen the constrained condition which is this weak chain.
The one in TOC which the goal of the company aims at is to achieve to be minimized for the maximization of the throughput in Point of sales and the inventory and the operating-expense, aiming at the constrained condition.
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The viewpoint and the concurrent engineering of the business process about the balance scorecard (CE)
It is a focus to the source step.
In the process of the source step which fixes a product concept and a goal cost, it tears a fence of each department of the development, the manufacture, the physical distribution, the sale and the service and it says that it proceeds with the alert and agile product development under the cooperation activity system which incorporates with the gate completely by the concurrent processing.
It says that 70 - 80 % of the production cost is decided in the product planning step.
That is, to let's attempt cost cutting in the manufacture stage or the procurement step on the lower reachs of the river, too, the room of the improvement is limited.
The reduction by the reduction of the experimental production number of times with substantial experimental production cost can be aimed at because it makes a cost, quality with development phase in the source by the front-loading and it is crowded.
Moreover, it is important to proceed with the best process designs and the production designs such as the evaluation of the manufacturing easiness and the reviewing of a matching with the facilities of possessing at present at the sumo ring where the person in charge in the related department is the same before product structure and a shape are fixed.
The viewpoint of the totaled cost management
In the mega-competition times, the cost is the lifeline of the business.
In the future, it is necessary that to build the mechanism of becoming information-oriented as it puts on an abandonment and the product life cycle cost which was included until the recycling by the management like Kazumoto shifts to the environment management, too.
Specifically, it is not only manufacturing cost and to grasp sales costs, development cost, user cost, abandonment cost, recycling cost such as the dealer margin tightly in the step of product planning and the marketing that a cost factor is fixed is important.
The way of piling a necessary cost about that it should attend here and flicking a cost is the fact not to be accepted in the times of the customer taking the lead.
As for customer's placing in the market of the lead character, it is market price's there being putting-on almost.
It isn't possible to stand in the predominance in the competition if piling a necessary cost in the remainder which drew a target-income from the market price and not planning the scale, the personnel, the facilities of the business and so on.
To proceed with the concurrent engineering activity while attempting the redistribution and the optimization of the management resource below the business strategy by the idea of such subtraction, under the product strategy by it becomes the key of the business activity.
The viewpoint of the profitability, the efficiency, the safety, the productivity, the germinancy about the business management is used for KPI of the financial viewpoint about the balance scorecard.
In the balance scorecard strategy, it is important to turn the cycle of PDCA(PLAN､DO､CHECK､ACTION) fast.
Specifically, to monitor the evaluation of the management at the value in the viewpoint of the financial accounting is important.
If mastering the cut end of the analysis of the affairs of a business by analyzing using the financial statement, being good, the actual state of the company management can be decidedly seen.
The basic information of the analysis of the affairs of a business can be collected from three of the balance sheets, the statements of profit and loss, the statements of cash flow.
The derivation of the various useful management judgement data is possible if processing the value of the financial statement in a variety of cut ends and computing it.
To analyze by the comparison of the industry, the competition, the time series and the target value, too, is valid.
By doing management indexes based on the various management information such as the industry information, the competition other company information, the management value in the past of the few years in Pairwise Comparison, the management level of the business can be grasped.
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The financial statement and the balance scorecard
The ability to solve the financial statement of the company by reading it becomes indispensable ability for the business person and the investor.
A new company law is enforced and the contents of the financial statement, too, are being changed.
It got to call a part with conventional capital the part of the net asset.
It changed to the conventional appropriation statement and newly, with the book of the variation gauge calculations such as the shareholders' equity, the fluctuation of the capital in the beginning of a term and the end of a term became able to be understood, being clear.
It will be possible to say that the balance scorecard is a valid tactical management system because it is the management tool which provides the mechanism of the monitoring of the performance evaluating.
It gets to do the can companywide KPI ( the performance evaluating index ) which nominates an organization at making incorporate a balance scorecard into the pyramidal structure of the organization hierarchy is controlled by which and it is monitored.
That is, the financial statement is the meaning which can be systematically with KPI watched over.
In the Europe and America, the balance scorecard is indispensable to enrich IR information and becomes an indispensable tool to fund raising from the capital market.
For the investor in addition to the one which engages in the business activity in the meaning, too, the balance scorecard will be able to be called common sense.
Specifically, it is possible to say that the financial statement is the business strategy technique to provide many excellent performance evaluating indexes for the stake folder logically.
The value of the financial statement is converted in the thing boiling value which can judge the management status, the fiscal conditions of the company, being clear by the theory, the analysis of the affairs of a business.
Here, to be familiar with the fundament of the minute perspective and the business management to the management value is important.