Skip to content

ACCA Strategic Professional · Advanced Performance Management · Non-financial performance measurement

Halden Hotels operates in a fast-changing market. Its finance director says the scorecard is reviewed only once a year, so targets quickly become outdated. Which change best addresses this weakness?

Halden should review its scorecard measures and targets more often so they reflect changes in strategy and the market. A scorecard is meant to be dynamic. Annual review in a fast-changing environment leaves targets outdated, and fixed multi-year targets or historic financial data would worsen the problem.

  1. AReview measures and targets more frequently, so they reflect changes in strategy and the environmentCorrect
  2. BReplace non-financial measures with last year's financial results
  3. CFix targets for five years to improve consistency
  4. DLimit the scorecard to the internal process perspective

Explanation

A scorecard should be a dynamic tool that is updated as strategy and the environment change. More frequent review of measures and targets keeps it relevant. Fixing targets for years or relying on historic financial data would make the problem worse, and dropping perspectives loses balance.

Did you get it right without looking?

One question tells you little. A timed set on Non-financial performance measurement shows your real accuracy, how long you take and where you lose marks.

Practise Non-financial performance measurementFree diagnostic mock

More Non-financial performance measurement questions