Proceedings

• The need to simulate efficient transmission, which becomes more obvious
inside corporations.
• Comprehensive information and measurement problems that appear in large
corporations (Kaplan & Atkinson, 1998, cited in Hoque & James, 2000).
• Setting techniques to help evaluate performance levels (Hoque & James, 2000)
• Managing a parameter creates inefficiencies in other unmonitored areas, in
addition to conflicts and gaming at an organizational level (Anthony &
Govindarajan 1998, Malina & Selto 2001, Smith 2002).
BSC is centered around 4 axes as follows:
Financial perspective (what are the stockholders’ expectations?)
Through the financial perspective, we measure the way in which financial
performance is viewed, meaning the number of debtors, cashflows and return on
investment. An enterprises’ financial perspective is vital for achieving success, but
financial data have two major drawbacks. First, they are historical data, and the
enterprises’ market value can greatly surpass the grand total of all net assets. The
difference between these two values is called intangible assets, as J. Tobin wrote in
“A general equilibrium approach to monetary theory.” These are not considered in
standard financial statements. Classic measures used to draw this perspective are:
profit, EBIT, EBITDA, EBT, increase in revenue, revenue obtained through new
products, gross profit in percentages, reduction of costs in key areas, economic value
added, return on equity.
Customer Perspective (what are the customers’ expectations?)
From the customers’ perspective we measure the direct impact taht the enterprise has
over its customers, meaning the necessary time needed to process a phone order, the
results of customer surveys, number of complaints received or the enterprises’
standing among customers. Classical measures include: market share, level of
customer satisfaction, neccesary time to comply with a customers’ request, number of
customer complaints, and time spent with the customers.
Internal process perspective (to satisfy customers and stockholders, what key
processes must be controlled?).
This perspective measures the way in which performance is added in key processes;
for instance, in time spent surveying, the number of units that require reproduction, or
production costs. Classic measures include:
Innovation: production capacity, number of new products or services, time necessary
to develop new products, number of new production licenses
Operational process: productivity, number of flaws, the time necessary to deliver a
product to a customer, the percentage of deliveries in real time, the time necessary to
synchronise production with orders, time required for deployment and tunning, real
production time
Post-delivery services: time required to replace and repair malfunctioning products,
time required to train customers in using the product.
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