The balanced scorecard (BSC) is a tool to measure organisational performance that goes beyond financial aspects.
The tool has attracted much interest in recent years (Christopher 2016: 265), and is intended to be used by managers to monitor different aspects of an organisation in a strategically holistic way.
A logical four-step process is used to construct a scorecard, which includes establishing:
- The contribution of logistics and supply chain strategy to organisational goals
- The measurable outcomes of success
- The processes that impact these outcomes
- Drivers of performance within these processes
The BSC framework comprises four perspectives: customer, financial, process and people (which incorporates innovation and environment).
The following table provides examples of measurements relating to each perspective:
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Consider the company you currently work for (or a previous company), and describe in the comments area one or two performance measurements for each of the four perspectives.
Christopher, M. (2016). Logistics and supply chain management (5th ed.). Pearson.
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