One way a company’s performance can be evaluated is by assessing its financial performance using data that is available through its published accounts. A key issue with this approach is that it is largely backward-looking since the financial results relate to previous years. It is possible to extrapolate the financial performance into the future but these projections are largely theoretical without knowing how the company is doing on a range of other measures such as customer satisfaction and business process performance.

A balanced business scorecard addresses some of the issues by capturing both financial and non-financial measures of performance. It is a well-known tool developed by Kaplan and ...

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