Economic Value Added and Balanced Scorecard Systems
Economic Value Added and Balanced Scorecard Systems.
Prior to beginning work on this discussion, please read about the Economic Value Added® (EVA®) and the Balanced Scorecard management systems on the websites of the Corporate Finance Institute (Links to an external site.) (CFI) and the Balanced Scorecard Institute (Links to an external site.) (BSI) respectively.
The consulting firm Stern Value Management designed the EVA® and the Palladium Group designed the Balanced Scorecard as breakthrough performance measures to rank ordering processes for investments and help clients create value.
Prepare in an initial post of at least 200 words a report describing the Balanced Scorecard and the Economic Value Added and their claimed advantages. Then compare these two systems to corporate and divisional performance measurement.
Guided Response: Review several of your peers’ posts. In a post of at least 100 words, respond to at least two of your peers’ posts in a substantive manner. Provide information that they may have missed or may not have considered about whether the Balanced Scorecard and EVA frameworks are mutually exclusive or they can be used together in the same organization. Do you agree with your peers’ findings? Why or why not?
