The management of any company has two key groups to satisfy. The first is customers. If your customers are not satisfied, they stop buying your product. The second group is owners (shareholders, co-op members, family, etc). If this group is not satisfied, management is replaced or the business is sold or even shut down. Dissatisfaction on the part of either of these groups is a major pain for management.

To improve the satisfaction of either of these groups, we need to measure that satisfaction. As an old management saying goes, if you do not measure it, you cannot improve it. For customers, some measure of customer satisfaction-a method of determining the score-needs to be in place. For owners, the traditional measurement is profit, the return due the owners.

But these two groups and their measurements are connected and therefore must be balanced.

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