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Internal-process perspective

Internal-process perspective is one of the four balanced scorecard lenses, asking which internal operations must run well for the organisation to deliver its customer value proposition.

Also known asinternal business process

ByHoang TruongUpdated

FrameworkBalanced scorecard

See it move

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A three-step flow diagram traces the internal-process perspective of the Balanced Scorecard across the full value chain. The first stage, Innovation, is measured by new-product development time and launches per year; it feeds into Operations, tracked by cycle time, defect rate in parts per million, and unit cost; Operations is then followed by Post-sale Service, assessed by warranty claim rate and resolution time. The connector labels — "feeds into" and "followed by" — reinforce that all three stages must be managed together, not in isolation.

Where it fits
SubjectManagerial AccountingAdvancedTopicStrategic Performance & the Balanced ScorecardAdvanced

Check yourself

PracticeCORE

A manufacturing company uses the balanced scorecard. Which of the following metrics belongs in the internal-process perspective rather than the customer perspective?

Select an answer to check your understanding.