NEED FOR BALANCE SCORECARD
During the late 1990s the external environment was changing rapidly.
The existing organization structure at philips did not support the this kind of change.
Products most often sold in the country where they used to manufacturing the product.
Growing influence of Asian company’s like LG and Samsung.
The operation of the company need to change.
Employees were more loyal to the business unit where they were working rather than company as a whole.
Another need to bring the changes in the organization was the continuity and to balance the interest of shareholders and employees.
As a part of balance scorecard Philips had identified that factors that were crucial for the business that were called as (CSF) critical success factors.
The critical success factor grouped under four prospective:
Competence
Process
Customer
Financial
Customer satisfaction and customer value creation to measure the performance of the company.
There were three levels of balance scorecard in Philips
Top management level
Middle management level
Lower management level
In 2003 it has introduced another level employee card.
In 2003 it has introduced another level employee card.
During the late 1990s the external environment was changing rapidly.
The existing organization structure at philips did not support the this kind of change.
Products most often sold in the country where they used to manufacturing the product.
Growing influence of Asian company’s like LG and Samsung.
The operation of the company need to change.
Employees were more loyal to the business unit where they were working rather than company as a whole.
Another need to bring the changes in the organization was the continuity and to balance the interest of shareholders and employees.
As a part of balance scorecard Philips had identified that factors that were crucial for the business that were called as (CSF) critical success factors.
The critical success factor grouped under four prospective:
Competence
Process
Customer
Financial
Customer satisfaction and customer value creation to measure the performance of the company.
There were three levels of balance scorecard in Philips
Top management level
Middle management level
Lower management level
In 2003 it has introduced another level employee card.
In 2003 it has introduced another level employee card.