Balanced scorecard The balanced scorecard goes beyond fnancial measures to provide a broader range of performance measures. Refer to The Balanced Scorecard Institute at www.balancedscorecard.org. ...

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ief introduction to the balanced scorecard:
The balanced scorecard is a strategic management performance metric that is used by the management to identify and improve various functions' performance. The concept of a balanced scorecard (BSC) was first introduced by David Norton and Robert Kaplan. The BSC involves measuring four main aspects such as business processes, learning, and growth, finance, and customers. Based on BSC analysis, the companies can pool the information in a single report to provide the information about quality and services in addition to financial performance, and accordingly, the decision can be taken to improve financial performance and efficiencies.
Non-financial measures to be considered for a balanced scorecard:
The BSC involves both financial and non-financial measures for decision-making and analysis purposes. The non-financial measures also play an important role in decision-making purposes and the detailed analysis of non-financial measures is as below:
a. Customer perspective:
From the customer perspective, the managers identify the market and customer segments in which the business units compete and measure the performance in the targeted segment. This perspective includes generic measures of successful results from a well-formulated strategy. The core measures of segments include the acquisition of new customers, the retention rate of old customers, increased customer satisfaction, market share in targeted customer segments, and profitability from customers. There are specific customer segment drivers to achieve the customer measures which are explained below:
· Customer profitability: It can be measured based on the net profit of a customer or a segment which is calculated after allowing all the expenditures incu
ed to support the customers.
· Acquisition of new customers: The entity can measure in absolute or relative terms the rate at which new customers have been acquired in a particular business unit segment and how the customers are responding new launch of a product of the entity.
· Retention of new and existing customers: The customer retention rate can be used as a measure for retention of customers and to check the measures based on the number of times and number of returning customers for the product of the entity.
· Market share: The market share can be measured from the proportion of market share held by the entity such as the number of customers based on a total of total customers in a particular market, the amount spent, or the number of units sold.
· Satisfaction of customers:...