Performanc M easurement Per formanc e Measurement Introduction P er erf for orm m ance an ce m easu ea sur rem en t is a f fun un dam da m en tal bu ilding bloc ock k of o f TQ M and an d a tot total al qu ality o or rgani ga nisat sati ion . H ist sto o rically, orga organ n isati sation s have alw ays m ea easu sur red pe rform orm an ance ce in so som m e w ay th rou gh the nanc na nci ial p e rfo rm an ance ce, , b e th is su cc cce e ss b y pr p ro t o r failu re th ro u g h liq u id at ati io n . H o w e ve ver r, trad adi itio n al p e rfo rm an ance ce m e asu re s, b ase d o n co c o st acc acco o u n tin g in fo rm at ati io n , p ro vid e little t to os su u p p o rt or organ gan isati sation s on the ir qu ality jou rne ney, y,be cause cau se the hey y do d o n ot m ap pr proce oce ss per p erf for orm m ance anc e an d im pr prov ovem em en ts seen se en by t th h e cu cust sto o m e r. In a su succe ccessf ssfu u lto talq u ality or o rg an ani isati satio n , p e rfor orm m an ance ce w illb e m ea easu sur red b y t the he im p ro ve vem m e n ts se see en by t th h e cu cust sto o m e r as w ellas b y t th h e re su sul lts d de e live ver re d to o th er stakeh ake h olde rs, su such ch as th th e sh shar are e ho ld e rs. T h is se sect cti io n co c o ve ver rs w h y m e asur asu rin g p e rfo rm an ance ce is im p o rtan ant t. T h is is f fo o llo w e d b y a de d e scri scrip tio n o f co cost st o f qu ality m easu ea sur rem en t, w hich ha has s bee b ee n u sed se d f for or m any an y year ye ars s to to d rive im pr prov ovem em en t acti activities and an d raise aw ar are e n e ss o f th e e ffe ct o f q u ality pr p ro b le m s in a an n o rg an ani isa sat tio n . A sim ple p er erf for orm m ance m easu rem en t fram ew or ork k is ou tline d, w hich includ es m or ore e than than just m easu ring , bu t also d e n in g an and d u n d e rst stan and d in g m e trics cs, , co col lle ct cti in g an and d an anal alys ysi in g d at ata, a, th e n p rio ritisin g an and d tak aki in g im prov provem em en t acti action s. A d escr es cri ipt pti ion of the b alan ance ced d scor sco rec ecar ard d ap appr proa oach ch is also cove co ver red . Why measure performance? ‘When youyou canknow measure what you are it’. speaking about and express it in numbers, something about Kelvin ‘You cannot manage what you cannot measure’. Anon Th ese es e are are tw tw o o of ften -q uo ted stat statem em en ts that ha t d em on st str rat ate e w hy m ea easu sur rem en t is im p ort ortant an t. Yet Ye t it is sur su rpri prising that ha t org org an ani isati sation s nd the area area of o f m ea easu sur rem en t so di d if cul cu lt to m anag an age. e. In t the he cycle o f ne ve ver r-en ding im pr prov ovem em en t, p erf erform orm an ance ce m easu ea sur rem en t plays an im po rtant an t role in: • Id e n tifyin g an d tracki ac kin g p ro g re ss ag ain st o rg an isat sa tio n al g o als op p p o rtu n itie s fo r im p ro ve vem m ent • Id e n tifyin g o • C om pa par ring pe rform orm ance an ce agai ag ainst ns t bo th inter ntern n aland an d ext ex tern ern alst stan anda dar rds R e vie w in g th th e p e rfo rm an ance ce o f an o rg an ani isati satio n is also an im p o rtan ant t st ste e p w h e n fo fo rm u lat ati in g th th e d ire ct cti io n o f th e st str rat ate e g ic act ac tivitie s. It is im p o rtan ant t to kn kno o w w h e re th e st str re n g th s an d w e ak akn n e ss sse es o of f th e o rg an ani isatio n lie , an and d as p ar art t o f th e ‘P lan –D o – C he heck ck – A ct’ cy cycl cle , m e as asu u re m e n t p lays a ke y ro ro le in q u ality an d p ro d u ct cti ivity im p ro ve vem m e n t acti activitie s. T h e m ain reaso n s it is ne n e e d e d ar a re : • To ensur e nsure e custom custom er req uirem en ts have b e ee en m et • To b e ab abl le to se set t se sen n sib le objectives and com ply w ith t the hem m • To pr p ro vid e standards fo r e st stab abl lish shi in g co c o m p ar ari iso son ns • To pr p ro vid e visibility an and d a “sco re b o ar ard d ”fo r p e o p le to monitor the ir ow n pe rform orm ance leve l • To h ig h lig h t quality problems and an d de term erm ine ar are e as for for pr prio ior rit ity y attentio ion n • To pr p ro vid e feedback fo r d rivin g th e im p ro ve vem m e n t e ffo rt It is also im po rtant to un de rstand stand the im pact of TQ M on im prove prove m en ts in bu sine ss p per erf form orm ance , on su sust stai ain in g cu rre n t p e rfo rm an ance ce an a n d re re d u cin g an y po ssib le d de e clin e in p e rfo rm an ance ce. . From to Quality Excellence www.dti.gov.uk/quality/performance page pa ge 1 of 7 Cost of quality measurement T h e co cost st o f d o in g a qu q u ality jo b , co con n d u ct cti in g q u ality im p ro ve vem m e n ts an d ach ie vin g g o als m u st b e care care fu lly m an anag age e d , so th at th e lo n g -te rm e ffe ct o f q u ality on o n th e o rg an ani isat sati io n is a d e sirab abl le o n e . T h e se co cost sts s m u st be a t tr ru e m e asu re o f th e q u ality e ffo rt, an and d ar are e b e st d e te rm in e d fro m an an anal alysis o f th e co cost sts s o f q u ality. S u ch an an anal alysis pr p ro vid e s: • A m etho etho d of assessing the eff effect ecti iven ess of the m anag em en t of qu ality • A m e an ans s o f d e te rm in in g p ro b le m ar are e as, o p p o rtu n itie s, savin g s an and d acti actio n p rio ritie s C o st o f q u ality is also an im p o rtan ant t co com m m u n icat cati io n to to o l. C ro sb sby y de d e m o n st str rat ate e d w h at a p po o w e rfu lto o lit co cou u ld onbe to raise aw ar aren en es ess s o f the im po rtance an ce of qual qu ality. H e refer eferr red to the m easu ea sur re as th th e “P rice o f N on confor conf orm m ance” , an and d ar arg g u e d th at o rg an ani isa sat tio n s ch o se to p ay for p o o r q u ality. Q u ality-r y-re late ated d ac act tivitie s that tha t w illin cu r co sts m ay b e sp lit in to p re ve n tio n co sts, ap p raisal sa lco sts a an n d failu re costs. Prevention costs ar are e asso associ ciated ated w ith the the de sign , im plem en tati ation and m aint nten en ance of the TQ M system system . T h e y are are p lan ann n e d an and d in cu cur rre d b e fo re actu actu al o p e rat ati io n , an and d co cou u ld in clu d e : ser rvice re q u ire m e n ts –se set ttin g sp e ci cati catio n s fo fo r in co com m in g m at ate e rials, p ro ce cesse sse s, n ish she ed • P ro d u ct o r se p ro d u ct cts/ s/se ser rvice ces s • Q u ality p lan n in g –cre atio n o f p lan s for fo r q u ality, re liab ility, o p e ratio n al, p ro d u ctio n , in sp e ctio n • Q u ality a assu ssu ran ance ce –cr cre e at ati io n an and d m ain te n an ance ce o f th e q u ality s syst yste em • Training –de velop m en t, prep prep arat arati ion and m ainten nten ance of prog prog ram m es Appraisal costs ar are ea ass sso o ciat ate e d w ith the su sup p p lie rs’an and d cu c u st sto o m e rs’e va val lu at ati io n o f p u rch chase ase d m at ate e rials, proc proces esse ses, s, pr prod od uct uc ts and an d ser se rvices ce s to to e n sur su re t the he y conf co nfor orm m to sp s p ec eci i cati cation s. Th ey coul co uld inc ncl lud e : • V e ri cati catio n –ch –che e ckin g o f in co com m in g m at ate e rial, p ro ce cess ss se t-u p , p ro d u ct cts s agai ag ain st ag agr re e d sp spe e ci cati catio n s • Q u ality a au u d its –ch –ch e ck th at th e q u ality s sys yst te m is fun functi ctio n in g co rre ctly • V e n d o r rat ati in g –asse ass e ssm e n t an and d ap app p ro val o f su sup p p lie rs, fo r p ro d u ct cts s an d se ser rvice ces s Failure costs can ca n b e sp lit in to th o se re su ltin g fro m in te rn al an d e xter xtern n al failu re . Internal failure costs o ccu r w h e n th e re su sul lts o f w o rk fai failto re ach d e sig n e d q u ality stan stand d ar ard d s an d ar are e d e te ct cte e d b e fo re th e y are are tran ansf sfe e rre d to th e cu cust sto o m e r. T h e y co u ld in clu d e : • W ast aste e –d o in g u n n e ce cessar ssary y w o rk or o r h o ld in g st sto o cks as a re su sul lt o f e rro rs, p o o r o rg an ani isati satio n o r com m unication • S cr crap ap –d e fe ct cti ive p ro d u ct o r m at ate e rial th at ca can n n o t b e re p aire d , u se sed d o r so sol ld • R e w o rk or o r re ct cti i ca cat tio n –th e co cor rre ct cti io n o f d e fe ct cti ive m at ate e rial o r e rro rs • F ailu re an alysi ys is – –ac act tivity re req q u ire d to e stab stabl lish th e cau ca u se s o f in te rn al p ro d u ct or or se rvice failu re External failure costs o cc ccu u r w h e n the p ro d u ct cts s or o r se rvice ces s fai failto reach reac h d e sig n q u ality stan stand d ar ard d s, b u t ar are e n o t d e te ct cte e d u n tilaf aft te r tran ansf sfe e r to th e cu cust sto o m e r. T h e y co c o u ld in clu d e : an d s se e rvicin g –o –o f re tu rn e d pr p ro d u ct cts s or th o se in t th h e e ld • R e p airs and • W ar arr ran ant ty c cl laim s –f –faile d p ro d u ct th at are re p lace d o r se ser rvice ces sr re e -p e rfo rm e d u n d e r a g u ar aran ant te e • C o m p lain ts –al –allw o rk an d co cost sts s asso ass o ciat ate e d w ith h an and d lin g and an d se ser rvicin g cu cust sto o m e rs’co com m p lain ts • R e tu rn s –h –h an d lin g an d in ve stig atio n o f re je cted o r re cal ca lle d p ro d u cts, in clu d in g tran sp o rt co sts From to Quality Excellence www.dti.gov.uk/quality/performance page pa ge 2 of 7 T h e re lat ati io n sh shi ip b e tw e e n th e q u ality-re lat ate e d co st sts s o f p re ve ven n tio n , ap app p raisal an and d failu re (th e P -A -F m o d e l) an and d in cr cre e asin g q u ality aw ar are e n e ss an d im p ro ve vem m e n t in th th e o rg an ani isati satio n is sho sh o w n g rap aph h ically as: Failure Quality related costs Appraisal Prevention Quality awareness and improvement E xp xpen en diture ure on prev preven en tio n and an d im prov provem em en t act acti ivities is an inves nv est tm en t fro m w hich a ret retur urn n is e xpec xp ect ted . E ffe ct cti ive q u ality im p ro ve vem m e n ts sh o u ld re su sul lt in a fu fu tu re st str re am o f b e n e ts, su such ch as: • • • • R e d u ce ced d failu re co cost sts s L o w e r ap app p raisal co cost sts s Incr nc rease ea sed d m arke arket t shar sh are e Incr ncrease ease d custom custom er base • M or ore e p rod ucti uctive w or orkf kfor orce ce M an any y or o rg an ani isa sat tio n s w illh av ave e tru e q u ality re re lat ate e d co cost sts s as h ig h as a s 15 1 5 % o f th e ir sale s r re e ve ven n u e , an and d e ffe ct cti ive q u ality im p ro ve vem m e n t p ro g ram m e s can ca n re d u ce th is su b st stan ant tially, th u s m akin g a di d ire ct co con n trib u tio n to p ro ts. A n alter erna nat tive to the P -A -F m od el is the the P roces oc ess s C os ost t M od e l, w hich categ categ or ori ises se s the the co cost st o f qu ality (C O Q ) into nto the the cost of con form orm ance (C O C ) and the cost of no n-con n-con for orm m ance (C O N C ), w he re: COQ = COC + CONC COC is th th e p ro ce cess ss co c o st o f p ro vid in g p ro d u ct cts/ s/se ser rvice ces s to to th e re q u ire d st stan and d ar ard d s, b y a g ive ven n sp spe e ci e d proc proces ess s in the the m o st eff effe cti ctive m an anne ne r. CONC is th th e failu re co cost st ass asso o ciat ate e d w ith a pr p ro ce cess ss n o t b e in g o p e rat ate e d to th e re q u ire m e n ts, o r th e co cost st d u e to th e var va riab ility o f th e p ro ce ss. ss . From to Quality Excellence www.dti.gov.uk/quality/performance page pa ge 3 of 7 To id e n tify, u n d e rst stan and d an a n d reap rea p the co cost st b e n e ts of o f q u ality im p ro ve vem m e n t ac act tivitie s th th e fo llo w in g fun dam da m en tal step step s shou sh ou ld b e inc ncl lud ed in the the ap appr proa oach ch: : • M anage m en ent t com m itm en ent t to nd ndi ing the the t tr rue cost co sts of qual qu ality • A q u ality c co o stin g system sy stem to id e n tify, re p o rt an d an alyse ys e q u ality r re e lated co st • A q u ality relat ate e d co cost st m an anag age e m e n t te am re sp spo o n sib le fo r d ire ct cti io n an and d co co-o rd in at ati io n o f th e q u ality co cost sti in g syst sy ste em • T h e in clu sio n o f q u ality co st sti in g train in g to e n ab abl le e ve ver ryo yon n e to u n d e rst stan and d the n an anci cial im p lica cat tio n s of of qu ality im pr prove ove m en t • T h e p re se sen n tat ati io n o f sig n i can t co cost sts s o f q u ality to to allp e rso son n n e lto p ro m o te th e ap app p ro ach • Intr ntrod uct uc tion of schem sche m es to achi ach ieve ev e m axim um par pa rticipa pat tion o f allem ploy oyee ee s Th e system system , on ce est e stabl ablishe d, sho uld beco b eco m e dynam d ynam ic and h ave a po sitive im pact on the achieve m en t of th e o rg an isat sa tio n ’ s m issi ss io n , g o als an d o b je ctive s. A simple performance measurement framework A go od pe per rfor orm m ance m easurem easurem en ent t fram ew or ork k w illfocus o n the the cust custom om er and m easur easure e the the righ ght t thing ngs. s. Pe rform orm ance m easures m ust be: erstoo oo d • M ean ing ful, un am bigu ou s and w ide ly und erst • O w ne ned d and m anage d by b y the t team eam s w ithin the the o rganisation ase e d o n a h ig h le ve vel lo f d at ata a in te g rity • B as • S uch uc h th at dat da ta co col llec ect tion is em e m be dd e d w ithin th e no rm al pr proc oced ed u res • A ble to dr dri ive im pr provem ovem en t ca lg o als a an n d ke y d rive rs o f th e o rg an isat sa tio n • L in ke d to critical Th ere ere ar are ef fou ou r key ke y st step ep s in a per p erf form orm ance an ce m ea easu sur rem en t fram ew or ork k - the str strat ateg eg ic ob o b je cti ctives ve s of o f th e o rg an ani isati satio n are con co n ve ver rte d in to d e sire d stan stand d ar ard d s of p e rfo rm an ance ce, , m e trics are are de d e ve vel lo p e d to to co m p ar are e th th e de sired p er erf form orm ance an ce w ith the actua actual lach achi ieved ev ed stan standa dar rds, ds , ga gaps ps are are ide nti nti ed , and an d im prov provem em en t acti action s initiated ated . Th e se st step ep s are are co cont nti inu ou sly im p le m en te d and an d re view ed : Establish k ey g oal s E stab l ish metrics Understand p erformance Initiate imp rovement Implement and review In itially, fo cu s o on naf fe e w ke y go g o als t th h at are critical ca lto th e su cce cc e ss o f th e o rg an isat sa tio n o r b u sin e ss, ss , an d e n su re the y ar are e S M A R T, i.e: Specific Measurable Achievable Relevant Timely From to Quality Excellence www.dti.gov.uk/quality/performance page pa ge 4 of 7 To assi a ssist in th th e d e ve vel lo p m e n t o f th e se g o als, co con n sid e r th e u se o f a bal b alan ance ced d sco s cor re card card , as di d iscu ssed sse d in th th e fo llo w in g se sect cti io n . O nce the the go goal als have bee b een n d e ne ned, d, the ne xt step in d evelop opi ing a per pe rfor orm m ance m easurem easurem en t fram ew or ork k is to de ne the the outcome metrics - w hat ha t has ha s to to b be e m ea easu sur red to d det eter erm m ine if the se g oal oa ls ar are e bei b eing ach achi ieved ev ed . If it is d if cu lt to d e n e o u tco m e m e trics fo r a p articu lar go al, it is p o ssi ss ib le th at th e g o al is e ith e r n o t “S M A R T ”o r cr cri itica cal lto th e s su u cc cce e ss o f th e b u sin e ss ss. . Fo r e ach o utco utcom m e m etr etric, br brai ains nst torm orm candi can dida dat te drivers by an answ sw eri ering the qu es est tion , “W hat m easurable fact actor ors s infl ue nc nce e this out o utco com m e? e?” ” O n ce th e list is co m p le te , se sel le ct th o se w ith g re at ate e st im p act act, , an and d th e se se, , th e m o st im p o rtan ant t d rive ver rs, sh sho o u ld h ave driver metrics, an and d b e p u t in p lac ace e rst st. . D rive ver r m e trics at o n e le ve vel lw illb e o u tco com m e m e trics at th e n e xt le ve vel ld o w n . A n o rg an ani isa sat tio n n e e d s t to o e vo vol lve its ow o w n se set t o f m e trics cs, , u sin g an any ye exi xist sti in g m e trics a as s a st s tar art tin g p o in t in un de rstan standi ding cur cu rren t pe rfor orm m ance an ce. . To en sur su re the y t tr rigg e r the im pr prov ovem em en t cycle, the y sh ou ld be in thr hree ee m ain ar areas: eas: Effectiveness = Actual output x 100% Expected output Th is is abou ab ou t the proc proces ess s out o utpu pu t, an and d d oing w hat ha t you yo u said yo you u w ou ld d o. Th e eff effect ec tivene ve ne ss m et etr rics shou sh ou ld re e ct w h e th e r th e d e sire d resul resu lts ar are e b e in g a ach chi ie ve ved d , th e rig h t th in g s be b e in g acco m p lish she e d . M e trics co u ld in clu d e q u ality, e .g ., g rad e o f p ro d u ct or le ve lo f se rvice , q u an tity, e .g ., to n n e s, tim e lin e ss, ss , e .g ., sp e e d o f re sp o n se , an d co st/p rice , e .g ., u n it co st. Efficiency = Resource actually used x 100% Resources planned to be used T h is is a ab b o u t th e p ro ce cess ss in p u t, e .g ., lab abo o u r, st staf aff f, e q u ip m e n t, m at ate e rials, an and d m e asur asu re s t th h e p e rfo rm an ance ce o f th e p ro ce cess ss syst s yste e m m an anag age e m e n t. It is po p o ssib le to u se re so sou u rce ces se ef f cie n tly, b u t in e ffe ct cti ive vel ly. w hich can be q uoted uoted as: Productivity = Outputs Inputs E xp e cte d p ro d u ctivity = E xp e cte d o u tp u t R esources esources expected to to be consum ed A ctual ualprodu oduc ctivity = A ctual ualoutput R eso urces urces act actual ually consum consu m ed S im p le ratio s, e.g., tonnes pe are e u se sed d. p e r p e rson so n -h o u r, co com m p u te r o u tp u t p e r o p e rato ato r d ay, ar From to Quality Excellence www.dti.gov.uk/quality/performance page pa ge 5 of 7 or N e xt xt, , d e sig n a d at ata a co c o lle cti ctio n /re p o rtin g p ro ce cess ss u sin g th e fo llo w in g st ste e p s: syst yste e m fo r co col lle ct cti in g an and d re p o rtin g d at ata a • S et up a s • W rite cle ar d e n itio n s • A g re e m e th o d for e st stab abl lish shi in g cu c u rre n t p e rfo rm an ance ce (if n o t alre ad ady y de d e te rm in e d ) • • • • • L ist re so sou u rce ces s re re q u ire d to to su s u p p o rt th e d e sig n A g re e d at ata a fo fo rm at ats s and an d classi cati catio n s fo fo r ag agg g re g at ati io n an a n d co c o n so sol lid at ati io n Id e n tify po p o ssib le so s o u rce ces s of o f b e n ch chm m ar ark k dat d ata a S e t re p o rtin g cal c ale n d ar E stabl stab lish ro le s an d re sp o n sib ilitie s • D e tailtrain in g re q u ire m e n ts • V alid at ate e w ith p ro ce cess ss st stake ake h o ld e rs The Th e g ap b et etw w ee n cur cu rren t and de sired pe per rfor orm m ance n ow has to to b e m easur easured ed. . S om e o f the m et etr rics already e xist an and d th e ir cu cur rre n t p e rfo rm an ance ce d at ata a m u st b e co col lle ct cte e d , as w e llas d at ata a fo fo r n e w m e trics. O n ce allth e d at ata a h as b e e n co col lle ct cte e d to id e n tify t th h e cu cur rre n t p e rfo rm an ance ce, , th e tar arg g e t le ve vel lo f p e rfo rm an ance ce for the m ed ium - and lon gg-t term erm m ust be de cide d. Th ese pe rfor orm m ance leve ls m ust be achievab le, and sho uld b e b ro ke ken n d o w n in to tar arg g e ts f fo o r d isc scr re te sh sho o rt-te rm in te rva val ls, e.g, th e n e xt th re e q u arte rs. To im plem en ent t the pe rfor orm m ance m easurem easurem en ent t fram ew or ork, k, a p pl lan w ith tim escales an d de desi sign gnat ated respo es po ns nsi ibilities is n nee ee de d. O nc nce e th e plan ha has sb bee ee n im plem en ted an and d dat da ta col co llec ect ted , ne w ba base sel line s can be set, set , com pari parison s m ade and ne w st stand and ards/ ards/t targe arge ts se t. Th e m et etr rics, tar arg g ets ets and an d im prov provem em en t act acti ivities m ust us t be cascad ed do w n t thr hrou ou gh the orga organ n isati sation , invo lving pe op le and team w or ork k in the de velop m en t of ne w m et etr rics, dat data a col co llect ecti ion and im prove prove m en t activitie s. Im pr prov ovem em en t can b e initiat ated ed by e xam ining the gaps ga ps b e tw ee n cu rren t and an d t tar arge ge t pe rform orm an ance ce o f th e dr d rive ver r m e trics a at t e ach le ve vel l. A m in im u m , ach ie vab le se set t o f acti actio n s is de d e te rm in e d , w ith p lan ans, s, assi ass ig n e d re sp spo o n sib ilitie s an a n d o w n e rs. T h e cr cri itical e le m e n ts of o f a go g o o d p e rfo rm an ance ce m e asu re m e n t acti activity are are ve ver ry sim ilar to th o se re q u ire d fo r a to tal q u ality im p ro ve m e n t act ac tivity: • • • • Leadership and com m itm ent Leadershi G oo d p lann ing and a sou nd im plem en tat ati ion str strateg ateg y A pp rop riat ate e em ploye e invo lvem en t S im ple m easur easurem em en ent t and evaluat uati ion • C ontr ontrol and im provem provem ent From to Quality Excellence www.dti.gov.uk/quality/performance page pa ge 6 of 7 The balanced scorecard approach F irst d e ve vel lo p e d b y K ap apl lan an and d N o rto n , a bal b alan ance ced d sco s cor re card card re co cog g n ise ses s th th e lim itat ati io n s of o f p u re ly n an anci cial m ea easu sur re m en t of an or o rgani ga nisati sation , w hich is no nor rm ally sho shor rt-term erm m easu ea sur rem en t. Financial perspective Goals Measures How do What must we customers see us? excel at? Internal business perspective Customer perspective Goals Measures Goals Measures Innovation and learning perspective Goals Measures Can we continue to improve and create value? A sco re card card has h as seve se ver ral m e asu re m e n t p e rsp spe e ct cti ive ves, s, w ith t th he o or rig in al sco re card card havi h avin g n an anci cial, cu cust sto o m e r, in te rn al b u sin e ss an a n d in n o vati vatio n an and d le ar arn n in g p e rsp spe e cti ctive ves. s. B alan ance ced d scor sco re card card s ar are e n o rm ally a ke key y ou o u tp u t fro m th e st str rat ate e g y fo fo rm u lat ati io n p ro ce cess. ss. T h e ke key y g o als th th at ar are e id e n ti e d as b e in g cr cri itical to th e su succe cce ss o f th e b u sin e ss, as p ar art t o f a p e rfo rm an ance ce m easu rem en t fram ew or ork, k, can also be con side red in the con text of a bal b alance d scorecar scorecard. d. A balance d sco recar ecard dd der eri ived from the E FQ M E xcellen ce M od el® (discusse d in the the E xcellen ce sect se cti ion ) w o u ld in clu d e n an anci cial an and d n o n - n an anci cial re su sul lts, cu cust sto o m e r re su sul lts, e m p lo ye yee e re su sul lts an d so soci cie tal re su sul lts. From to Quality Excellence www.dti.gov.uk/quality/performance page pa ge 7 of 7
