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The last three perspectives focus on non-financial measures that are drivers of
the long-term financial success. For each perspective objectives are defined, that are
operationalised by measures for which targets are set and initiatives are developed how
the objectives could be met (see Figure 3.12).
Figure 3.12 Balanced scorecard
From the financial perspective, besides the shareholder perspective which can be
represented by value orientedmeasures such as added economic value or ROI, other financial
measures that are drivers for those measures and are depending on the characteristics of the
company can be used as well. Such measures can be cost or working capital.
In the customer perspective customer service and satisfaction are the most important
indicators, that can be supplemented by market and/or account share, customer profitability,
or service calls to formulate the goals in the customer perspective in a holistic manner.
Indicators in the operational excellence perspective give management an insight
into the effectiveness of their operations. Indicators that can be used are quality, response
time, cycle/lead time, newproduct development time or inventory are appropriate indicators.
Indicators in the innovation and learning perspective provide an overview of how
successful human resources, innovation, and knowledge management are. Possible indicators
are employee satisfaction and retention, information availability or employee skills.
Another aspect and focus of the balanced scorecard is the strategy map where
cause-and-effect-relations between the different objectives are shown to illustrate how
the ultimate financial goals can be met. This is the heart of the instrument and should
be done by means of a workshop in the management team. From the strategy map
a balanced scorecard and an implementation plan can be derived. In Figure 3.13, an
example for an airline that is planning to increase its profit by speeding up the ground
handling time is shown.