The balanced scorecard system is based on the belief that managers need a broad range of performance measures in order to manage their business. The balanced scorecard provides a framework that translates the aims and objectives of a business into a series of performance targets that can be measured. Thus performance is measured and the link to strategy ensures that management can see if strategic objectives are being achieved. The balanced scorecard measures a company’s performance from four different perspectives; the financial perspective, the customer perspective, the internal business processes perspective and the innovation and learning perspective. The term 'balanced' is used because managerial performance is assessed under all four headings and it implies that each quadrant is of equal importance and deserves equal weighting. This can help senior management evaluate whether lower level managers have improved one area at the expense of another. The balanced scorecard will recognize the improvement in financial performance but will also reveal that this was achieved by sacrificing ‘on-time’ performance targets. The advantages of the approach can be summarised as:

1. It measures performance in a variety of ways, rather than relying on one figure.
2. Managers are unlikely to be able to distort the performance measure as bad performance is difficult to hide if multiple performance measures are used.
3. It takes a long-term, strategic approach to business performance.
4. Success in the four key areas should lead to the long-term success of the organisation.
5. It is flexible, as what is measured can be changed over time to reflect changing priorities.
6. 'What gets measured gets done'. If managers know they are being appraised on various aspects of performance, they will pay attention to these areas, rather than simply paying 'lip service' to them.

b) Critical success factors for a health and leisure company