Question

Alberto Company manufactures a security control device. Company is considering to use a Balanced Scorecard approach for measuring the company’s overall performance. Specifically, Alberto Company’s management wants to assess company’s performance from four angles as follows:

1) Financial Measure: Has our financial performance improved?

2) Customer: Do customers recognize/agree that we are delivering more value?

3) Internal Business Processes: Have we improved key business processes so that we can deliver more

value to customers?

4) Employees: Are we maintaining our ability to change and improve?

Requirement: For each of the above angles, identify two practical measures that could be used for assessment of company’s performance.

Answer 1

1) Financial Measure :

• whether the alberto company is making profits or not and if the company is making profits find out the percentage of improvement since previous year
• check the growth in value of company share at the end of the year

2) Customer :

• check whether the sales are incresing or decreasing
• how many units are sold out of the total production

3) Internal Business Processes :

• Any Technological improvements and new methods of manufacturing process are used to increase prodctivity and efficiency.
• Any improvement strategies had been formulated or not.

4) Employees :

• Find out the number of review meetings held to discuss the performance of employees and measures taken to improve their performance
• observe the frequency of new recruitment , the criteria for selecting them and steps taken to updating the skills of employees.