(d) The balanced scorecard approach to performance measurement focuses on four different
perspectives and uses financial and non-financial indicators.
Customer perspective
This focuses on what existing and new customers value. It will give rise to targets that matter to
customers, such as cost, quality, delivery, inspection, handling and so on.
Internal perspective
This focuses on what processes an organisation must excel at to achieve financial and customer
objectives. It will give rise to targets on internal processes, such as efficiency measures.
Innovation and learning perspective.
This focuses on how an organisation can improve and create future wealth. It will consider the
organisation's capacity to maintain its competitive position through the acquisition of new skills
and the development of new products.
Financial
This focuses on wealth creation for shareholders. It will give rise to targets, such as measures of
growth, profitability and shareholder value. |
