Financial measures, such as ROI and residual income, and operating measure, such as those discussed in the previous section, may be included in a balanced scorecard. A balanced scorecard consists of an integrated set of performance measure that are derived from and support a company’s strategy. A strategy is essentially a theory about how to achieve the organization’s goals. For example, Southwest Airlines’ strategy is to offer an operational excellence customer value proposition that has three key components-low ticket prices, convenience, and reliability. The company operates only one type of aircraft, the Boeing 737, to reduce maintenance and training costs and simplify scheduling. It further reduces cost by not offering meals, seat assignments, or baggage transfers and by booking a large portion of its passenger revenue over the Internet. Southwest also uses point-to-point flights rather than the hub-and-spoke approach of its la