9. Learning and growthBusiness process FinancialStrategycustomerTo deal with this problem Robert Kaplan and David Norton developed the balance score card a performance measurement system that considers not only financial measures, but also customers, business process and learning measures. The balance score card is depicted in the following diagram:The score card allows managers to evaluate a firm from different complementary perspectives. The arguments run this:<br />A firm can offer superior returns to stake holders if it has a competitive advantage in its product or service offerings when compared to its rivals.<br />In order to sustain a competitive advantage, a firm must offer superior value to customers.<br />This, in turn, requires development of operations with necessary capabilities.<br />The financial perspective: EVA is what is left over after a frim has covered all its factors of production.<br />The customer perspective: does the firm provide the customer with superior value in terms of product differentiation, low cost and quick response.<br />The operation perspective: how effectively and efficiently do the core processes that produce customer value perform? Which are the most important sources of customer value, which need improving to offer greater customer value.<br />The organizational perspective: can this firm adapt to changes in its environment? Is its work force committed to shared goals? Does the organization learn from past mistakes? When confronted with a problem, does it go to work on root causes or does it only scratch the surface. <br />