balance scorecard

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  • The balanced scorecard is a system for performance measurement that looks at several factors instead of focusing on financial performance. While financial performance is still a critical aspect of the balanced scorecard, it also looks at three other perspectives. The customer perspective measures the company’s success from the perspective of customer satisfaction and can typically be measured via customer satisfaction surveys, market share of business as well as number of returns. The business prospect perspective evaluates the business by looking at the efficiency of the manufacturing process. This can be measured by evaluating how many vendors are being used in the manufacturing process as well as the number of on-time deliveries. The learning and growth perspective measures employee satisfaction. You can evaluate this by looking at the amount of turnover as well as by evaluating employee satisfaction with their jobs. These three perspectives, in conjunction with financial performance, will give managers a well rounded picture on a businesses successes and shortfalls.
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