Abstract
In today's way of running a business, employees are expected to be team players, and managers are told to act as leaders, coaches, and strategists. Yet very few companies have developed performance management systems that simultaneously encourage workers and managers to assume these new roles and meet financial objectives. The Limited, Inc., the rapidly growing, $9 billion retailer headquartered in Columbus, Ohio, aims to be an exception. To integrate how work is done (competencies) with business results (growth targets), the system draws on the concept of a "balanced scorecard"the idea that activities in four areas drive business success: financial performance, customer service, internal processes, and learning. To emphasize the learning component, the company has defined a unique set of management competencies that center on the Limited's leadership position in various retail segments. Successes with the initial pilot installations suggest that the company is well on its way to encouraging and rewarding those leadership skills that lead to financial success.
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