Page 157 - Microsoft Word - 00 P1 IW Prelims.docx
P. 157

Non-financial performance indicators




               4.2  Evaluation of the performance pyramid as a way to link strategy,
                     operations and performance










                              Advantages                                    Disadvantages

                 The first five advantages discussed            The first six disadvantages
                 for the balanced scorecard are                 discussed for the balanced
                 relevant here. In addition:                    scorecard are relevant here. In
                                                                addition:
                      It is hierarchical requiring
                       senior managers to set                        The model is quite complicated
                       objectives and relevant                        making the time and resources
                       performance measures for                       required significant
                       each level of the organisation

                      It is process focused:


                       –     considers how   processes
                             combine to achieve
                             organisational goals

                       –     measures interact both
                             horizontally and vertically

                      Recognises financial and
                       non-financial measures can
                       support each other


























                                                                                                      147
   152   153   154   155   156   157   158   159   160   161   162