White Papers

Combining EVA with the Balanced Scorecard to Improve Strategic Focus and Alignment

Overview This paper discusses the potential to combine use of EVA measures of organisational performance with the use of the Balanced Scorecard approach to managing strategic management behaviours. It briefly outlines how the two tools are defined, considers their strengths and weaknesses, and then considers one approach for using the two tools together. Concerning EVA, the paper notes that it has advantages over other, accounting based, measures of financial performance and is highly compatible with the Balanced Scorecard approach to performance measurement and reporting, but has limitations when used to promote strategic alignment. Concerning Balanced Scorecard, the paper notes the strength of the framework as a tool to support strategic or operational management activity, but highlights its dependence on effective measure selection. The paper concludes that when EVA is used in conjunction with the Balanced Scorecard approach, the resulting hybrid tool can be a powerful basis for encouraging organisational change and performance improvement

Further White Paper Details
Publisher2GC Active Management File FormatPDF, requires Acrobat Rdr 5
Date PublishedJanuary 2001 Downloads9
FormatWhite Papers   
Topics
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