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

Harbour Logistics, a freight company, wants a performance framework that links its strategy to measures across four perspectives and shows how improvements in staff skills eventually feed through to profit. Which framework best fits this need?

The balanced scorecard fits, because it translates strategy into measures across financial, customer, internal process and learning and growth perspectives. These perspectives are linked by cause and effect, so staff skill improvements can be traced through processes and customers to profit. The other models address activities, change or stakeholders.

  1. ABalanced scorecard, with cause-and-effect links between its financial, customer, internal process and learning and growth perspectivesCorrect
  2. BPorter's value chain, which splits activities into primary and support activities
  3. CLewin's three-stage model of unfreezing, changing and refreezing
  4. DMendelow's power/interest grid for classifying stakeholders

Explanation

The balanced scorecard (Kaplan and Norton) translates strategy into measures across four perspectives. Learning and growth drives internal processes, which drive customer outcomes, which drive financial results. The value chain analyses activities, Lewin addresses change and Mendelow addresses stakeholders, so none of them provides the measurement linkage.

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