SBC

(a)

Performance of an organisation could be measured through financial aspects and non-financial

aspects and activities of the business. Entities focussing only on the financial indicators and financial
aspects of the business and measuring the performance only via financial indicators would not help
the management in understanding the actual performance and depth analysis of the organisation as
the focus is narrowed down. Therefore, it is important for SBC to measure the performance of the
organisation with the assistance of both financial and non-financial performance indicators in order
to obtain a holistic and broad view with regards to the performance and status of SBC.

In addition to that, focusing only on the financial indicators would mean that the focus is entirely on
the short term of the business which means that the organisation is not focussing on the long-term
aspects due to lack of concentration on non-financial performance indicators hence it would result in
the business being not aligning to the overall mission and objective. Therefore, it is essentially
important that the business focuses on the non-financial performance indicators too as it is an
essential tool in achieving the long-term goals, missions and objectives. Furthermore, non-financial
performance indicators provide depth analysis and support on the important activities like customer
satisfaction, compliance with the rules, regulations and laws and environmental standards, and
market and competitors hence, the non-financial performance indicators would be helpful in
providing such information for the management.

Balanced scorecard is a qualitative performance measurement technique which analyses the

performance of the organisation in a broader perspective and also focuses on 4 main perspectives
which include financial perspectives, customer perspective, Internal process and learning and
growth.

Using balanced scorecard would be successful by the SBC in measuring and managing the
performance as the focus is very broad and not narrowed, this would also provide better strategic
planning as it considers all aspects into account when making the decision.

SBC could use balance scorecard to set KPIs in all four aspects and establish performance indicators
and action plan to achieve the KPIs which would eventually improve the performance through the
achievement of the KPIs set. Furthermore, the four aspects of the balance scorecard are
interdependent and connected with each for instance SBC could invest and work towards learning
and growth of the employees and staffs which would improve the internal process of SBC like
productivity, controls and standards which would help in the achievement of the customer
satisfaction, market share and market growth of SBC which would eventually contribute to the
achievement of financial objectives like higher turnover, margins and profits. Hence, SBC using
balance scorecard would be successful in measuring the performance of the organisation from a
broader perspective and eventually would contribute to better performance of SBC from all
perspectives. However, using balance scorecard by the management of SBC could be stated as costly
as the management should allocate funds on the achievement of all four perspective however to
overcome this SBC could carry out a cost benefit analysis and take up an action plan.

Furthermore, SBC using balance score card as a performance management technique would be time
consuming as the management needs to focus on the all 4 perspectives, establish KPIs for all 4
perspectives and provide action plan for all 4 perspectives and also monitor the progress and
relevance of the action plan and adjusting for any, moreover using balance scorecard there would be
difficulties in establishing KPIs for each perspective as the KPIs set may contradict the achievement
of the other KPI set. Finally,

implementation of balance scorecard technique would consume the time and resources of the
senior management as generally the KPIs are set and established by the senior management hence it
should be ensured that the time and resources used by the senior management are successful
through the implementation and achievement rather than wasting.

Therefore, SBC should ensure that the implementation of balance scorecard is resulting is benefits
like improved control and improved overall performance of SBC and aligning towards the
achievement of the overall strategic objectives and missions and to facilitate this it should also carry
out cost benefit analysis to ensure that the cost of implementation do not outweigh the benefits and
the costs should be minimised whilst improving the benefits.