PERFORMANCE MEASUREMENT AND BALANCED SCORECARD
Kaplan and Johnson, in their famous book Relevance
Lost, attacked corporate reporting systems saying that they were too
oriented towards meeting the needs of the stockmarket, and that this
was a major reason why Western manufacturing was losing out to Japan.
For too long, performance measurement has been dominated by:
- backward looking, and
- financial
measures of performance- It has been said that this
is like a one-eyed person trying to drive a car by looking in the rear
view mirror. Of course, what are needed are both financial and non-financial
performance measures, looking forward as well as back.
