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Non-financial performance indicators
2.3 Evaluation of the balanced scorecard as a performance measurement tool
Advantages Disadvantages
Includes financial measures – Difficult to record and process
these reveal the results of non-financial (often qualitative)
actions taken data
Includes non-financial Information overload
measures – these drive future
financial performance Lack of commitment by senior
managers or poor
External as well as internal communication to other
information managers/employees threatens
its success
Multiple measures make it
harder to manipulate Conflict between measures
performance
Lack of some key perspectives,
Can change measures over e.g. CSR
time to reflect changing
priorities Time and cost involved
Is aligned with overall strategic Focus on strategic level
objectives and vision so should (although can implement at
achieve long-term success lower levels)
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