Balanced score card

It identifies four major where improvement can lead to business success. These are linked two each other, improvement of one also leads to improvement of others (improvement in innovation and learn can lead to improvement in internal business processes).

These four perspectives are as follows

1. Financial perspective
2. Customer satisfaction
3. Internal business perspective
4. Learning and innovation
   
   
   Let see, each of them turn by turn.

1. Financial perspective.
   This perspective reflects the performance of the other three areas. This is traditional used for performance management purpose. Senior management takes strategic decisions based on financial information presented to them. It includes performance measures such as profitability, sales growth, ROI
   
    
2. Customer satisfaction.
   Customers are increasingly being considered important aspect of the business performance. Lack of customer satisfaction means reduced profitability in future. It includes performance measures such as repeat business from customer, no of complaints.
   
    
3. Internal business perspective.
   For customer satisfaction internal business processes needs to work properly. This means there is formal procedures and processes for material handling, manufacturing and quality inspection. It includes performance measures such as no of warranty claims, no of projects completed on time and in budget, no of pieces reworked.
   
    
4. Learning and innovation.
   It helps to improve internal business perspective. New products, markets and ideas are needed to achieve competitive advantage and ensure business growth and survival. It includes performance measures like no of new products vs existing products, no of employees received training, time to market new product.