4 perspective of Balanced scorecard approach to performance measurement.

Balanced score card is strategic management technique for communicating and evaluating the achievement of strategy and mission of an organization. It comprises an integrated framework of financial an non — financial performance measures that aim to clarify, communicate and manage strategy implementation.

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The concept translate an organization strategy into objectives and performance measurements for the following four perspectives:

Financial perspective

Financial perspective consider how the organization appear to shareholders. That is, the way the organization creates value to the shareholders. The balanced scorecards identifies three core financial themes that will drive the business strategy, they are revenue growth and mix, cost reduction and asset utilization.

Customer perspectives.

Customer perspective consider how the organization appear to the customer. The customer perspective should identify the customer and the market segment in which the business units will compete. There is strong link between the customer perspective and the revenue objectives in the financial perspective.

Internal perspective

The internal perspective require focus on the things the organization must excel at to achieve its financial and customer objectives. The value chain processes consists of those processes namely innovation process, the operation process and the post sale process.

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Learning and growth perspective

The learning and growth perspective require the organization to ask itself whether it can continue to improve and create value. If an organization is to continue having loyal, satisfied customer and make good use of its resources, it must keep learning and developing.