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ACCA Strategic Professional · Strategic Business Leader · Enabling success: performance excellence

Brightwell Hospital Group uses a balanced scorecard. One of its managers proposes the measure 'percentage of patients who would recommend the hospital to family and friends'. Under Kaplan and Norton's four perspectives, in which perspective does this measure belong?

The measure belongs in the customer perspective of the balanced scorecard. Patient willingness to recommend the hospital reflects customer satisfaction and loyalty, not internal process efficiency, staff learning or financial results, which are covered by the other three perspectives.

  1. AInternal business process perspective
  2. BCustomer perspectiveCorrect
  3. CLearning and growth perspective
  4. DFinancial perspective

Explanation

A recommendation rate shows how customers perceive the organisation and so belongs in the customer perspective. It is not a process measure like waiting time, nor a capability measure like training hours, nor a financial measure like margin. Placing it elsewhere would misrepresent what it assesses.

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