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6.4: From Management by Objectives to the Balanced Scorecard

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  • Learning Objectives

    1. Be able to describe management by objectives.
    2. Be able to describe the Balanced Scorecard.
    3. Understand the evolution of performance measurement systems.

    As you might expect, organizations use a variety of measurement approaches—that is, how they go about setting and managing goals and objectives. If you have an understanding of how the use of these approaches has evolved, starting with management by objectives (MBO), you will also have a much better view of how and why the current incarnations, as seen by variations on the Balanced Scorecard, have many desirable features.

    Figure 6.5


    Goals and objectives are an essential part of any good performance management system.

    FEA – Performance Reference Model – public domain.