Financial perspective
Financial perspective is the top layer of the balanced scorecard, asking how the firm appears to shareholders. Common metrics include return on investment, economic value added, revenue growth, and operating profit margin.
FrameworkBalanced scorecard
See it move
The formula card states the financial result as a function of customer outcomes, which are themselves driven by internal processes and ultimately by learning and growth, reflecting the balanced scorecard's causal chain. Three primary financial metrics are listed: ROI (return on investment, with a target of 18%), ROS (return on sales, profit as a percentage of revenue), and EVA (economic value added, profit above the cost of capital). The card notes that the financial perspective is a lagging indicator — it records outcomes that the other three scorecard perspectives have already caused, so judging managers on profit alone encourages short-termism.
Check yourself
A balanced scorecard review shows that customer satisfaction scores have fallen sharply over six consecutive months, yet all financial-perspective metrics remain strong. Which explanation best fits this observation?