Balanced Scorecard Flashcards
What is the balanced scorecard?
model that assesses measures of financial and non-financial performance
What are the 4 perspectives of the scorecard?
Financial, customer, Internal Processes, Organisational capacity
How does this apply to shareholders?
Interested in finance
Profits, Dividends, Return on investment
How does this apply to customers?
Interested in value for money, satisfaction, loyalty/repeat
How does this look to the business?
Operations, capacity utilisation, lead time
How does this relate to learning and growth?
The business looks at what it can change or improve
Employee engagement, staff training, R + D
What are the benefits of this model?
Encourages businesses to look at present and future measures
Broader view of performance
Links to long-term performance
Involves all stakeholders
What are the drawbacks of this model?
Too many key performance indicators, miscommunication
Needs balance between the 4 perspectives
Needs to be regularly updated
How does this relate to Tesco
The corporate steering wheel
Surveys customers
Targets a new segment
Donate to local charities
No excess stocks, reduce waste
Train and retain staff
Maximise profits
