Page 56 - MODULE QUALITY TOOLS DMQ 30262

DMQ 30262

Example 4.2:

Create a balanced scorecard for one electronics company.

Solution:

Table 4.1: The Balanced Scorecard

Source: Applying the Balanced Scorecard to Small Companies by Chee W. Chow, Kamal M. Haddad, and
James E. Williamson - Management Accounting, August 1997

Determining the performance measure is often more difficult than expected.

Managers need to focus on the cause and effect relationships with strategy in order
to link measurement with the company’s strategy. Managers often understand the
link between customer satisfaction, employee satisfaction and financial performance.

However, one must remember that the balanced scorecard does not provide
guidance as to how to improve performance to achieve the desired strategic results.

In addition, the balanced scorecard must be constantly up-dated. This is good

because it requires re-alignment with changing strategies or corporate structure. This
also has a negative impact. It takes a great amount of time and resources to keep the

KKTM Kuantan 55 DMQ 30262