Taejeah

The most popular approach in current management thinking is the use of a balance scorecard.

It consists of a variety of indicators being both financial and non-financial. It might be more suitable to use multiple measures of performance where each measure reflects a different aspect of achievement. Where multiple measures are used, some may be non-financial.

The information provided may be both financial and non-financial and covers areas such as:-
1 PROFITABILITY
2 CUSTOMER SATISFACTION
3 INTERNAL EFFICIENCY
4 INNOVATION AND LEARNING

What is the balance scorecard?

The balance scorecard is an approach to performance measurement which focuses on four different perspectives and uses financial and non-financial indicators.

However, performance targets are set once the key areas for improvement have been identified and the balance scorecard is the main monthly report.

The scorecard is balanced since managers are required to think in terms of all four (4) perspectives, to prevent improvements being made in one area at the expense of the other.

Important features of this approach are as follows:
a) It looks at both internal and external matters of the oragnisation
b) It is related to the key elements of a company's strategy
c) Financial and non-financial measures are linked together

EddyTeddy

Thats great.... Sounds u r well prepared for this paper.. :P