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TSH provides courses for students who are studying for accountancy examinations. The accountancy education sector is extremely competitive; it is dominated by a small number of national organisations but there is also a large number of smaller regional training providers. The majority of TSH students are part-time students and fit their studies around their employment. TSH has developed a reputation for understanding its students' needs and delivering a high quality service that meets their requirements.
TSH has grown in recent years from a small regional company to a position where it now has colleges in several of the country's large cities. The company directors now wish TSH to grow further and have implemented a strategy to achieve the objective of becoming "thelargest accountancy study provider in the country".
TSH's board of directors currently uses financial reports to monitor the company's performance but are thinking about implementing a Balanced Scorecard approach to performance management.
Required:
(a) Explain the disadvantages of using financial performance indicators alone to assess performance.
(b) Explain TWO non-financial performance measures, each from a different perspective of the Balanced Scorecard, which TSH could use to measure the performance of the business against the new strategy. (You must state the perspectives that your measures relate to and explain why the measures would be effective.)
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