This chapter is from the book
This chapter is from the book
This chapter is from the book
Summary
Although we focus on the financial performance of a firm in this book, money is by no means the only extent in which a corporation should be measured. As described in a popular 1992 Harvard Business Review article, the balanced scorecard introduced by Robert Kaplan and David Norton shows that financial performance is only one aspect of firm performance. Several other areas must be considered in the overall performance of an organization. For example, qualitative and nonfinancial measures such as environmental and corporate social responsibility measures are equally important. In addition, customer satisfaction, internal business processes, and learning each play important roles in organizations.
Most organizations are in business to create economic value and supply chain and operations greatly contribute to this goal. As such, this book will discuss how supply chain and operations decisions directly affect the financial performance of companies. Throughout the book, you will be exposed to high-level thinking related to financial impact. Then, as you are working toward improving fill rates, reducing lead times, or moving toward JIT inventory, you will understand how these actions affect your organization financially.
Those in not-for-profit or private organizations will also find this book relevant. Executives and managers of nonprofits and private companies are held accountable for raising funds and other revenue generating activities, managing costs and spending, and, just like other companies, nonprofits and private organizations have to bring in more money than they spend to remain viable.
The material in this book will touch on financial and managerial accounting, corporate finance, valuation methods, and other topics. Few other authors have combined these areas into one resource for supply chain and operations professionals. Undoubtedly, as you read this book, you will have additional or alternative viewpoints and experiences, and desire greater depth in particular subjects. If we pique your interest in the topics we cover, and we hope to, entire books have been written in great detail on each of these areas. We encourage you to obtain additional resources and continue learning.