Strategic Performance Measurement System Case Study
SPMS has two specific components. First, information that generated provides an understanding of cause-effect linkages between operations and strategy and goals, and various aspects of the value chain including suppliers and customers. Second, it concerns provision of measures in the areas of financial, customers, business processes and long-term innovation. It is the dimension of integrativeness that provides managers with information that potentially assists in developing competitive …show more content…
The balanced scorecard allows managers to look at the business from four important perspectives. It provides answers to four basic questions: how do customers see us? (Customer perspective); what must we excel at? (Internal business perspective);can we continue to improve and create value? (Innovation and learning perspective); how do we look to shareholders? (Financial perspective).
The customers perspective captures the ability of the organisation to provide quality product, the effectiveness of their delivery, and overall customer service and satisfaction. Customers' concerns tend to fall into four categories: time, quality, performance and service, and cost. The measures include customer's satisfaction, market share, customer loyalty and customer retention.
The internal business processes perspective is primarily an analysis of the organisation's internal processes. This perspective focuses on the internal business results that lead to financial success and customers' expectations. The measures include cycle time, on-time delivery, inventory turnover and quality of