Level, Management Accountancy – Performance Management, November 2003. (45 min) 1 The balanced scorecard is a technique for assessing performance that recognises the importance of both financial and non-financial measures. The performance perspectives are 1 Customer, for example a Percentage of deliveries on time b Percentage of orders fulfilled accurately. 2 Internal, for example a The length of the production cycle b The length of time to introduce new products. 3 Innovation a The length of the production cycle b The length of time to introduce new products. 4 Financial a Profit as a percentage of sales b Return on capital employed. E plc is placing too much emphasis on the financial perspective. Comparing its actual performance against an internal target – it should use the balance scorecard approach to provide fuller, more rounded assessment of its performance.
