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Published by: Harvard Business Publishing
Published in: "Balanced Scorecard Report", 2012

Abstract

We have seen many organizations set ambitious high-level financial goals but dedicate almost no time to ensuring that the resources they have allocated will enable them to achieve these goals. To formulate a sound strategy, executives need a deep understanding of their organization's financial goals and targets; that is, the level of financial performance required to meet stakeholder expectations. These targets are typically high-level financial outcomes such as improved revenue; margin; earnings before interest, taxes, depreciation, and amortization (EBITDA); or market share. Such outcomes constitute the ‘endgame’ that an organization is working toward.

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Abstract

We have seen many organizations set ambitious high-level financial goals but dedicate almost no time to ensuring that the resources they have allocated will enable them to achieve these goals. To formulate a sound strategy, executives need a deep understanding of their organization's financial goals and targets; that is, the level of financial performance required to meet stakeholder expectations. These targets are typically high-level financial outcomes such as improved revenue; margin; earnings before interest, taxes, depreciation, and amortization (EBITDA); or market share. Such outcomes constitute the ‘endgame’ that an organization is working toward.

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