Integrated measuring system
| Integrated measuring system |
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| See also |
The use of financial measures in strategic management is subject to numerous limitations.
Therefore, many managers now returns to the need for a broader look at the issue of application of indicators to assess the enterprise (not only of the financial situation, but also the efficiency and effectiveness of all processes).
Integrated measurement systems are a tool for extending the scope of strategic analysis beyond the narrowly understood area of financial analysis.
Advantages of integrated measuring systems
Integrated measurement systems have several advantages, including:
- They provide a more comprehensive view of a company's performance, as they take into account a wide range of factors beyond just financial indicators.
- They allow managers to identify areas of improvement and make more informed decisions.
- They can help align the goals and strategies of different departments and divisions within a company.
- They can improve communication and collaboration between different levels of management and across different departments.
- They can provide a more accurate and balanced view of the company's performance, which can be useful in communicating with external stakeholders, such as investors and regulators.
- They can be used to evaluate the company's performance in the context of its industry and competitors.
- They can help managers identify key performance indicators and track progress over time.
Examples of integrated measurement systems
The most famous and popular are:
- Balanced scorecard
- EFQM model
- Managerial dashboard.
They take into account a broad set of measures and indicators that go beyond the narrow - financial - look at the company. They allow to make broad and objective assessment and analysis of the company.
References
- Tierney, B., Crowley, B., Gunter, D., Lee, J., & Thompson, M. (2001). A monitoring sensor management system for grid environments. Cluster Computing, 4(1), 19-28.
