Customer perspective balanced scorecard measures

The Balanced Scorecard (BSC) was originally proposed to improve a company s performance measurement. Traditionally, the measurement had been focused only on financial measures. The target of the BSC is to expand the measurement information by adding non-financial, long-term and immaterial factors into the measurement system. Originally the BSC consisted of four measurement perspectives financial perspective, external relations such as customers or partners, internal processes, and learning and growth. (Andersen, Cobbold Lawrie 2001). 

Balanced scorecard An approach to measurement that cascades measures from the top down through the organization. The method uses four perspectives to achieve balance. These are financial, customer, internal business, and irmovation and learning. 

For certain industries, regions, or market segments, excellent quality may still offer opportunities for companies to distinguish themselves from their competitors. In this case, customer-perceived quality measures would be highly appropriate to include in the Balanced Scorecard s customer perspective. Quality measures for manufactured goods could be measured by incidence of defects, say parts-per-miUion defect rates [among others], as measured by customers. (87)... 

Balanced Scorecard Balanced Scorecard introduced by R. Kaplan and D. Norton in early 1990s is a concept for measuring a company s activities in terms of its vision and strategies, to give managers a comprehensive view of the performance of a business. Typically it comprises simple tables broken into four sections of perspectives which are labelled as Financial , Customer , Internal Business Processes and Learning Growth . 

In practice, Kaplan and Norton propose that the balanced scorecard should balance the financial perspective (goals for future performance and measures of past performance) with similar goals and measures for the underlying drivers of longterm profitability. These drivers are identified as the business process perspective, the innovation and learning perspective and the customer perspective. 

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