YY is a large banking organisation. It has a branch in most of the towns in the country in which it operates. The banks business is mainly concerned with private individuals. It is a very traditional bank that offers only over the counter services during limited opening hours.

At a recent board meeting, the directors of the bank stated that they were worried that the bank was losing customers to the new style banks that offer a much more friendly service, longer opening hours, internet banking and a diverse range of banking services.

It has now been decided that the bank will pursue strategies to achieve the goal of being The bank that people choose and will use a balanced scorecard to monitor progress towards that goal.

Required:

1. Produce, for each of the three non-financial perspectives of a balanced scorecard, an objective and a performance measure that the bank could use. (In your answer, you must state each perspective and the objective and performance measure for that perspective and explain why they support the goal of YY becoming The bank that people choose.) (19 marks)
2. Explain the disadvantages of using financial performance indicators alone to assess performance. (6 marks)

(25 marks)