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Abstract
Many managers have adopted a balanced scorecard approach to measuring performance. But "balance" implies that all measures are equally important in all settings. The authors endorse the multimeasure approach, but challenge the idea that all measures are equally important regardless of the product-market strategy adopted. Results of a survey of more than 200 businesses support this position. The most successful performers emphasized the measures and perspectives (customer, internal business, innovation and growth, financial) most appropriate to their strategy type (prospector, analyzer, low-cost defender, differentiated defender).
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Abstract
Many managers have adopted a balanced scorecard approach to measuring performance. But "balance" implies that all measures are equally important in all settings. The authors endorse the multimeasure approach, but challenge the idea that all measures are equally important regardless of the product-market strategy adopted. Results of a survey of more than 200 businesses support this position. The most successful performers emphasized the measures and perspectives (customer, internal business, innovation and growth, financial) most appropriate to their strategy type (prospector, analyzer, low-cost defender, differentiated defender).