In this step, we look at the balanced scorecard tool.
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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Your task
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.
References
Christopher, M. (2016). Logistics and supply chain management (5th ed.). Pearson.