Furthermore, the development of a simple measurement scale (one to five as shown in
figure 3) can illustrate the degree to which a specific performance measure or rather
the result of it, influences the achievement of a specific goal. This can be seen in the
example in figure 3 where if we assume that the goal is to assess the performance of a
supplier, the number of defects that the supplier provides can be the performance
metric, and if the parts provided are very small and of everyday use then the result of
the measurement is of:
• little importance to a financial performance goal of the company (score 1)
• some importance to the customer perspective goal if the faulty parts find their way
to them (score 3)
• great importance to the internal business perspective goal and in particular to a
number of processes which will depend on the specific part (score 4)
• some importance to the innovation and learning perspective goal since it might
illustrate the ability of the company to learn from previous experiences with the
particular supplier or part (score 2)
• some importance to the project perspective goal since the faulty part can have
‘knock on’ effects to other components (score 3)
• high importance to the supplier perspective goal since the supplier’s performance
is assessed (score 5)