Document Type

Article

Publication Date

11-2002

Abstract

The drive to implement the balanced scorecard at Philips Electronics came from the top down - as a directive from the Board of Management in Europe to all Philips divisions and companies worldwide. The directive went to each of the companies and their quality departments, with the effort in the medical division headed by the Quality Steering Committee that reports to the president of Philips Medical Systems. Philips Electronics has used the balanced scorecard to align company vision, focus employees on how they fit into the big picture, and educate them on what drives the business. An essential aid to communicating the business strategy, the BSC works as a vehicle to take key financial indicators and create a quantitative expression of the business strategy. In fact, Philips Electronics' management team uses it to guide the quarterly business reviews worldwide in order to promote organizational learning and continuous improvement.

Comments

Copyright 2002 by IMA®, Montvale, N.J., www.imanet.org, used with permission.