It’s business performance measurement tool. It measures both financial as well as non-financial performance.
Managers should appraise performance from four perspectives:
Here the word “score” is saying that we are going to give score and also we have to balance the score of aspects given.
It’s business performance measurement tool. It measures both financial as well as non-financial performance.
Managers should appraise performance from four perspectives:
| Perspective | Focus |
Financial | Financial Performance |
Customer | Customer Satisfaction |
Internal Process | Business efficiency |
Innovation | Improvement and Development |
Managers who have increased financial results will not be awarded if the success has been achieved by cutting back on staff training or cutting back on research and development.
To assess the performance of each perspective, we have to attribute KPIs.
Perspective | Focus | KPI |
Financial | Financial Performance | ROI Operating Margin |
Customer | Customer Satisfaction | Level of Returns Service Ratings |
Internal Process | Business efficiency | New product lead time, Per unit cost |
Innovation | Improvement and Development | R & D, Employee satisfaction |
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