Balanced scorecardSeveral years ago. United Parcel Service (UPS) believed that the Internet was going tochange the parcel delivery market and would require UPS to become a more nimble andcustomer-focused organization. As a result, UPS replaced its old measurement system,which was 90% oriented toward financial performance, with a balanced scorecard. Thescorecard emphasized four "point of arrival" measures, which were1.Customer satisfaction index—a measure of customer satisfaction.2.Employee relations index—a measure of employee sentiment and morale. 3.Competitiveposition—delivery performance relative to competition.Time in transit—the time from order entry to deliver)'.a.Why did UPS introduce a balanced scorecard and nonfinancial measures in its newperformance measurement system? b.Why do you think UPS included a factor measuring employee sentiment?
Balanced scorecardSeveral years ago. United Parcel Service (UPS) believed that the Internet was going tochange the parcel delivery market and would require UPS to become a more nimble andcustomer-focused organization. As a result, UPS replaced its old measurement system,which was 90% oriented toward financial performance, with a balanced scorecard. The
scorecard emphasized four "point of arrival" measures, which were
1.Customer satisfaction index—a measure of customer satisfaction.
2.Employee relations index—a measure of employee sentiment and morale. 3.Competitiveposition—delivery performance relative to competition.
Time in transit—the time from order entry to deliver)'.
a.Why did UPS introduce a balanced scorecard and nonfinancial measures in its newperformance measurement system? b.Why do you think UPS included a factor measuring employee sentiment?
Step by step
Solved in 2 steps
