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Management article
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Reference no. B0103B
Authors: Marc B. Wolman
Published by: Harvard Business Publishing
Published in: "Balanced Scorecard Report", 2001

Abstract

When Finnforest Ltd., Europe''s largest manufacturer and supplier of timber products, acquired Stantons in 1995, the latter enjoyed a large customer base and strong wholesale and retail relationships. But Finnforest U.K. was in trouble. Unable to trace profits or identify profitable--and more importantly, unprofitable--customers, the company had suffered millions of dollars in losses over the preceding six-year period. The remedy: a combination of activity-based costing and the Balanced Scorecard. Together, the two systems provided much-needed measurability and accountability. The firm''s then finance and information technology director chronicles Finnforest U.K.''s woes and its path to sound management and profitability.

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Abstract

When Finnforest Ltd., Europe''s largest manufacturer and supplier of timber products, acquired Stantons in 1995, the latter enjoyed a large customer base and strong wholesale and retail relationships. But Finnforest U.K. was in trouble. Unable to trace profits or identify profitable--and more importantly, unprofitable--customers, the company had suffered millions of dollars in losses over the preceding six-year period. The remedy: a combination of activity-based costing and the Balanced Scorecard. Together, the two systems provided much-needed measurability and accountability. The firm''s then finance and information technology director chronicles Finnforest U.K.''s woes and its path to sound management and profitability.

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