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Vol. 11 No. 2, 2025

This is an Open Access article, distributed under the terms 
of the Creative Commons Attribution CC BY 4.0

1 National University of Food Technologies, Ukraine (corresponding author)
E-mail: gutkevych@ukr.net
ORCID: https://orcid.org/0000-0003-2645-4011
2 State Scientific Institution "Institute of Education Content Modernization", Ukraine
ORCID: https://orcid.org/0000-0001-5623-1965
3 Black Sea Research Institute of Economy and Innovation, Ukraine
ORCID: https://orcid.org/0000-0003-0841-4534

DOI: https://doi.org/10.30525/2256-0742/2025-11-2-352-360

EVALUATION OF PRODUCT QUALITY:  
INDICATORS AND METHODS

Svitlana Gutkevych1, Yurii Safonov2, Oleh Holovko3

Abstract. The present article focuses on the economic approach to product quality management, which seeks to 
achieve an economic effect by comparing costs and benefits. The article evaluates the effectiveness and efficiency 
of product quality management based on market, financial, social, and other factors. A range of approaches to 
quality management efficiency are identified, including economic, scientific and technical, resource, social, and 
environmental. Indicators are utilised to evaluate the efficacy of the product quality management process, and 
these indicators may be absolute or relative. The selection of quality indicators is contingent upon the unique 
characteristics of the product or service in question, with consideration given to both consumer requirements  
and company policy. The article further proposes a classification scheme of product quality indicators, encompassing 
the manner of expression, the scope of application, the number of assessed properties, and the stages of  
determining indicators. The article goes on to discuss the particular complexities involved in evaluating the 
effectiveness of activities in the printing industry. The quality of the publication produced by publishing and 
printing enterprises is the result of the editorial process, the publishing processing and the polygraphic execution. 
The article proposes a set of quality indicators for printing enterprises, which includes product and service quality. 
A variety of methods and indicators are employed to evaluate the quality of manufactured products, including the 
absolute, relative, prospective, and optimal levels of quality. The article under discussion herein sets forth a range 
of approaches to the evaluation of costs associated with quality assurance, proposing the utilisation of a system 
of indicators for the purpose of evaluating quality. The proposed methods encompass the differential, complex, 
and mixed approach. The article proposes evaluating the effectiveness of quality control and the organisational 
and technological readiness of the enterprise, as well as its solvency, personnel support and information support, 
in order to assess the quality of physical printed products and printing services provided by the company. It also 
suggests evaluating management effectiveness at three levels: the manufacturing enterprise; the customer of 
printing services; and the end user of printed products. The article under discussion herein sets out to explore 
the use of rating systems in the evaluation of the effectiveness of product quality management. In this regard, 
the balanced scorecard system (BSS) is presented as an alternative to traditional financial analytical evaluation 
indicators. 

Keywords: economic, product quality management, efficiency, printing industry, quality indicators, rating  
systems, balanced scorecard, relative.

JEL Classification: O10, H21

1. Introduction
From an economic perspective, the objective 

of product quality management is to generate an  
economic effect, which is defined as the achieved 
outcome in monetary, material or social terms. 
For a business entity, the expediency of product 
quality management measures is determined by  

comparing the obtained effect and the costs  
necessary to obtain it, and is evaluated according to  
two criteria:
– Effectiveness is characterised by the achievement of 
market, financial and social results, which are expressed 
in terms of revenue, income, satisfaction of needs,  
and material and social benefits.



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– Efficiency represents the relative effectiveness of an 
activity, process, operation or project, defined as the 
ratio of the outcome to the cost of achieving it.

2. Presenting Main Material
As posited by certain economists (Kopnov, Rogov, 

2008), a multi-faceted typology of quality management 
efficiency is posited, predicated on the outcomes of 
such management systems. This typology comprises 
the following types: economic, scientific and technical, 
resource, social and environmental (see Table 1).  
Each of these can be evaluated at two levels: firstly, the 
level of product quality assessment as a result of the 
production process; and secondly, the level of general 
enterprise management. The effectiveness of the 
product quality management process is characterised 
by a system of indicators that determine the quantity 
and quality of the parameters of this process.  
The concept of economic efficiency can be 
operationalised through the utilisation of various 
indicators, which are categorised into absolute and 
relative based on their operationalisation.

In scientific works (Bart, Efimov, 2006), domestic and 
foreign scientists have proposed different approaches 
to the formation of a set of quality indicators,  
but they clearly define that the choice of indicators 
depends on the individual characteristics of the 
product or service, taking into account the purpose 
and conditions of their use, consumer requirements 
and the company's policy in the field of qualities'.  
In the course of the research, a range of systems 
for evaluating the efficiency of product quality  
management were considered, as well as the methods  
by which they are evaluated. It was determined that 
these systems can be divided into two groups:

Group I: indicators of product quality. 
P group: indicators of the effectiveness of the 

management process (actions of the management 
system of forming and ensuring the quality of  
products).

As the analytical review showed, many scientific 
works by economists (Veksler, 2008; Ilenkova, 
Ilenkova, Mkhitarian, 2003; Markina, Burdelna, 2011; 
Lepiyko, 2011; Momot, 2007; Feigenbaum, 1991) 
devoted to product management contain consideration 
of the first group, and product quality indicators are 
classified according to various features depending 
on the assessment goals: the way of expression, 
scope of application, number of assessed properties, 
stages of determining indicators, etc. The generalised 
classification scheme of product quality indicators is 
presented in Figure 1.

The peculiarities of evaluating the effectiveness of 
activities in the printing industry are related to the 
object of their activity. The outcome of the publishing 
and printing enterprises' activities is a publication that 
has undergone editorial and publishing processing, 
and has been produced by printing, embossing or 
other methods. It contains information intended 
for distribution and meets the requirements of state 
standards and other regulatory legal acts regarding 
publishing design, printing and technical execution 
(Verkhovna Rada of Ukraine). The quality of the 
content of the work and its editorial and publishing  
processing, taking into account the target and 
readership, form the internal quality of the publication. 
The external quality of the publication is determined 
during the process of polygraphic execution, or the 
provision of polygraphic services. According to the 
nomenclature of industrial products, these services 
belong to the category of production services or  
works. This is precisely what determines the duality of 
the products of printing enterprises as:
– Publishing services by typographic method;
– material products with a certain design, features and 
parameters, the embodied result of intellectual work.

The quality of products is determined by the 
combination of the quality of the technical means 
employed and other material objects, as well as the 
quality of the service offered to the customer. This 
can be expressed in signs and parameters: a product 

Table 1
Types of product quality management effectiveness
Effectiveness	types Characteristics

Economic
Calculate	the	value	ratio	of	all	types	of	results	and	costs	caused	by	quality	management	measures.	
Internal	efficiency	is	expressed	through	reduced	expenditure	and	increased	productivity,	while	external	
efficiency	is	expressed	through	increased	income	and	market	share.

Motor	and	technical Associated	with	the	introduction	of	new	technologies	and	the	production	of	high-quality	products	
based	on	scientific	and	technical	advances.

Resource Reflects	the	impact	of	quality	management	on	the	production	and	consumption	volumes	of	certain	types	
of	resources.

Social It	is	based	on	the	social	outcomes	of	product	quality	management,	particularly	the	growth	of	social	
capital	and	the	levels	of	trust	and	stability.

Ecologic It	takes	into	account	the	positive	or	negative	environmental	impact	of	quality	management	measures.

Source: supplemented based on data



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sign reflects qualitative or quantitative characteristics 
of its properties, and a single parameter can only 
reflect quantitative characteristics. In this regard, the  
objective is to determine the quality of printing  
products as an overall assessment of the quality of the 
final result of the activity (product) and the quality 
of customer service. The nomenclature of the main  
quality indicators of printed publications, as the final 
result of the activity of printing enterprises, is defined  
by GOST 4.482-87 System of product quality 
indicators. Publishing and printing design and 
printing execution. Nomenclature of indicators. These  
indicators are included in the technical specifications 
and product requirements, thereby enabling the 
assessment of the technical level of product quality.

A thorough analytical review of the extant regulatory 
documentation (The System for the Development 
and Delivery of Products to Production, 2000) and 
approaches to determining service quality indicators 
(Lepiyko, et al., 2011) was undertaken to inform the 
formation of the following product quality indicators 
of printing enterprises (Figure 2). These indicators are 
unidimensional in nature, in the sense that they are 
designed to characterise one of the properties of the 
products.

The analysis of changes in the quantitative 
characteristics of individual unit indicators is 
complemented by the analysis of the volume of sales 
per citizen of the country, etc. It is imperative to  
allocate a substantial amount of attention to the 
evaluation of service quality, as this provides insight 
into the culture of communication between company 
employees and customers, as well as the adherence  

to the stipulated terms of order fulfilment. The 
quality level of a certain product is determined by the  
specified quality indicators, which are understood  
as a quantitative characteristic of the degree of suitability 
of a particular type of product to meet a specific  
demand for it in comparison with the corresponding 
basic indicators under fixed conditions of consumption. 
The assessment of product quality encompasses the 
determination of its absolute, relative, prospective and 
optimal level.

The absolute level of quality is determined by 
calculating selected indicators of product quality  
without comparing them with the corresponding 
indicators of similar products. The definition is 
inadequate insofar as the absolute values of quality 
indicators do not reflect the degree of compliance 
with contemporary requirements. Consequently,  
the relative level of certain types of manufactured 
products is determined by comparing its indicators 
with the absolute quality indicators of the best similar 
domestic and foreign samples of products.

The level of product quality is increasing under the 
influence of scientific and technological progress and 
consumer demands. Accordingly, some scientists 
propose assessing the prospective level of quality,  
which takes into account the pace of scientific and 
technological growth. Given the emergence of new 
products and labour practices, it is important to 
determine the optimal quality level, i.e., the level at 
which the total public cost of producing and using 
products would be minimal under certain consumption 
conditions. In order to provide a comprehensive 
evaluation of the quality level of all products produced, 

Figure 1. Classification of product quality indicators

Source: supplemented based on data

By way of 
expression 

In
 m

on
et

ar
y 

un
its

 

In
 n

at
ur

al
 u

ni
ts

 

By the number 
of evaluative 

properties 

Si
ng

le
 

In
te

gr
al

 

C
om

pl
ex

 

By field of 
application 

To
 th

e 
un

it 
of

 v
ol

um
e 

To
 a

 se
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f h
et

er
og

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 o

bj
ec

ts
 

To
 a

 se
t o

f h
om

og
en

eo
us

 o
bj

ec
ts

 

By the stage of 
determining the 

values of indicators 

D
es

ig
n 

O
pe

ra
tio

na
l 

Pr
ed

ic
tiv

e 

Pr
od

uc
tio

n 

According to the 
evaluation 
properties 

R
el

ia
bi

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y 

Ec
ol

og
ic

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 a

nd
 o

th
er

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Ec
on

om
y 

Se
cu

ri
ty

 

Te
ch

no
lo

gy
 

Er
go

no
m

ic
s 

Product quality indicator 



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printing enterprises employ a range of general 
indicators. These indicators encompass the following: 
the proportion of new products in the total output;  
the proportion of products in the highest quality 
category; the proportion of certified and non-certified 
products; the proportion of certified products;  
and the proportion of exported products.

The integral indicator of the level of product quality  
is calculated as the ratio of the total beneficial effect  
from the production and sale of products to the total 
costs necessary for its achievement, according to the 
formula:

At – cost estimate of the effect of the production 
and sale of products of the established quality for the 
calculation period t;

Bt – is the cost estimate of costs for the production 
and sale of products of the established quality for the 
calculation period t (Gutkevych, Haydutskyi, 2022).

In order to obtain an objective assessment of  
product quality, it is necessary to take into account the 
cost estimate that made it possible to obtain results.  
As posited by several scientists (Feigenbaum, 1991), 
it is considered expedient, within the modern context,  
to determine and estimate the costs associated  
with the formation and assurance of product quality. 
This can be achieved through two approaches: firstly, 
as proposed by A. Feigenbaum and J. Juran; and 
secondly, as outlined by F. Crosby. According to the first  
approach, costs are divided into:
– Expenses for the prevention of defects are defined  
as expenses that are incurred in order to prevent the  

very possibility of defects arising. These expenses 
may also be incurred in order to reduce or completely 
eliminate the possibility of defects or losses.
– The costs of control are the costs of determining  
and confirming the existing or achieved quality level.
– Losses from defects include the costs of eliminating 
defects and achieving the appropriate level of quality,  
as well as the costs of complaints.

The following are highlighted when combining the 
first two types of costs: 1) compliance costs: costs 
associated with ensuring the production of quality 
products; 2) nonconformity costs (losses associated 
with internal and external defects). The approach to 
grouping quality costs is determined by management 
and is often based on the company's accounting policy.

In certain scientific works, in addition to individual 
and complex ones, indirect indicators of product  
quality are distinguished, including, but not limited to: 
fines for the production of products of inappropriate 
quality; volume and proportion of defective products; 
losses due to defects, etc. Nevertheless, it is generally 
accepted that the quality of products cannot be 
characterised by a single indicator. Consequently, 
a system of indicators is employed, with a number of 
methods being utilised to calculate them. The analytical 
approach to the consideration of methodological 
recommendations for assessing the level of product 
quality made it possible to single out two main  
areas of assessment: homogeneous and heterogeneous 
products. Printed products in material form are 
homogeneous; therefore, it is proposed to evaluate  
their quality level by such methods as differential, 
complex and mixed.

Figure 2. Product quality indicators of a printing enterprise

Source: supplemented based on data

Product quality indicators of a printing enterprise 

As a material object As a service 

-Publication format;
- dial tape format;
-font cone;
-combination of colors;
-tonal rendering of a single-
colour illustration;
- reproduction of colours in a
multicoloured illustration;
- text contrast;
- the specific force of tearing
out one sheet with a seamless
binding method;
- colour;
- performance level indicator.

- The quality of material resources used;
- reliability of the service (compliance of the
current term of use with the expected one);
- timeliness (ensuring the provision of the
service clearly within the established terms);
- completeness of service provision;
- politeness in attitude towards the client,
flexibility and prudence of employees;
- availability (possibility to use the service);
- sociability (the possibility of simple and
prompt information and material exchange);
- safety (guaranteeing that the service is
harmless to the client's life and health, will be
safe for the environment).

 



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The differential method is based on determining 

individual quality indicators and evaluating their 
current values in comparison with baseline or reference 
values. The limitations of the differential method are 
the complexity of making decisions based on the  
values of many individual product quality indicators. 
The authors propose using a comprehensive method 
for assessing product quality, which involves  
calculating a comprehensive (generalised) weighted 
average indicator.

These indicators can be utilised to evaluate the 
quality of both physical printed products and  
printing services by specialists within the printing 
industry. In the theoretical framework of management, 
the quality of a product is not solely determined 
by its inherent characteristics; it is also influenced 
by the efficacy of the management system in place.  
The influence of the management subject can be 
evaluated by the quality of management decisions 
that are consistently adopted, contributing to the  
formation and provision of product quality, as well 
as the effective utilisation of resources necessary 
for this process. That is, product quality is the result 
of a management decision, which can be evaluated  
in the following directions:
– Process result (percentage of plan implementation, 
market share, share of products of inappropriate  
quality in the total cost, growth rate of production 
volumes, etc.);
– the quality of the management structure  
(the number and completeness of performed 
management functions);
– the quality of resource provision.

The following indicators are proposed as a basis 
for the evaluation of each direction. The evaluation of 
the organisational and technological readiness of the 
enterprise, as the primary indicator, is determined on 
the basis of an analysis of the enterprise's production 
capabilities to produce products of the established 
assortment and quality, and the provision of the 
enterprise with basic means. The second indicator, 
which characterises the flexibility of the capital 
structure of the enterprise and its solvency, involves 
an analysis aimed at determining the possibility  
of the enterprise financing its activities on an expanded 
basis and maintaining its solvency, making payments 
on time. The third indicator is concerned with the 
assessment of staffing. This involves the study of the 
professional and qualification levels of the company's 
employees, the level of labour utilisation, staff turnover 
and the degree of job satisfaction.

This indicator measures the effectiveness of quality 
control at all stages of the production process.  
It establishes clear norms and conditions for activities 
and interactions with suppliers, customers, and so 
on. At the same time, it takes into account employees' 
compliance with labour and technological discipline.

Management decisions are based on information 
support, which is evaluated according to the fifth 
indicator. The company studies the completeness, 
availability, correctness, time effectiveness, 
reproducibility and security of the information 
necessary for management decisions. Each of the above 
generalised indicators is the sum of the evaluations 
of the analytical indicators, and their relationship  
and interdependence are shown in Figure 3. 

This scheme posits that research is conducted with 
the objective of ascertaining the optimal value of each 
indicator. To this end, the indicators are converted to 
a scale of values ranging from 0 to 1, with 1 representing 
the value of the indicator closest to the optimal  
value and 0 representing the value of the indicator  
that is the least close to the optimal value.

The proposed general indicator of the quality of 
activity is limited in its application, in that it takes 
into account the results of the assessment only at 
the enterprise. However, a number of scientists 
posit that the criteria for the social assessment of 
quality management are the degree of satisfaction of  
customers' needs and requirements. Therefore, the 
assessment of management effectiveness should 
be carried out at three levels: the manufacturing  
enterprise, the customer of printing services  
(in accordance with the requirements of regulatory 
and internal documentation, personal perception of 
quality) and the end user of printed products (personal 
perception of quality).

The objective of this study is to ascertain the target 
value and the degree of satisfaction of the customer's 
requirements by employing the scoring method.  
This method entails the allocation of an expert or 
consumer score in points to each technical and 
economic parameter of the product. Subsequently, the 
general technical and economic level of the product 
is evaluated through a specialised method, namely an 
integral evaluation of its quality. The study of customer 
satisfaction has been demonstrated to facilitate the 
enhancement of product characteristics and the 
augmentation of service quality. Furthermore, it has 
been shown to contribute to the consolidation of the 
company's competitive position within the market, 
as well as the establishment of long-term, mutually 
beneficial relationships with customers.

The efficiency of printing companies is subject to 
change over time. The evaluation of the effectiveness 
of product quality management is achieved through 
the implementation of a rating system, which involves 
the construction of a rating of enterprises based on 
calculated metrics. This enables the company to assess 
its competitive advantages compared to its competitors. 
The sequence of stages carried out in the process of 
building the rating is presented in Figure 4.

When evaluating, three types of ratings can be 
distinguished:



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– According to the indicator of the quality of the 
enterprise's activity;
– according to the satisfaction ratio of customers' 
requirements and expectations;
– according to the general indicator of the effectiveness  
of product quality management.

The rating system enables specialists within the 
management apparatus to make more informed 
management decisions, based on data from both 
internal sources of information and independent 
external assessments.

Modern systems of analytical indicators provide 
a structure for evaluating the activity of enterprises 
within the context of management systems. On the 
basis of these systems, enterprises are able to distribute 
resources, manage personnel, collect and process 
information, and improve management processes.  
The objective of the study was to explore the  
possibility of obtaining generalising conclusions, 
developing and making strategic decisions regarding 
product quality management. This necessitated the 
development and application of integral evaluation 
indicators based on indicators compiled into a  
system. The purpose of this was to provide the most 
complete and general assessment of the effectiveness  
of product quality management not only in the 

enterprise as a whole, but also in individual functional 
areas.

The balanced scorecard system (BSS) emerged as 
an alternative to the system of financial analytical 
evaluation indicators calculated based on statistical 
reporting data. The latter usually does not fully reflect 
reliable information, has a static character, and does 
not meet the goals of strategic management of the 
enterprise. Following a thorough analytical review, this 
paper summarises the main advantages and limitations 
in the application of approaches to the formation of 
a balanced system of indicators proposed by various 
scientists. These approaches include: the balanced 
system of indicators of Kaplan and Norton (1992),  
the Lorenz Meisel system (1999), K. McNair's efficiency 
pyramid, R. Lancha, K. Cross (2000), EP2M systems 
by K. Adams and P. Roberts (1993), matrices of factors 
affecting Keegan's efficiency, and so forth (Table 2).

The evaluation is based on the following criteria: 
scope of application, adaptability and flexibility, time 
orientation, feedback mechanisms, risk of incorrect 
indicator selection, and overall efficiency.
– BSS Kaplan-Norton. Applicable to organisations 
of various scales and sectors of activity. The system 
is easily adaptable and provides analysis based  
on past, present, and future data. However, there 

Figure 3. Performance indicators of quality management

Source: supplemented based on data

I. Assessment
of 

organisational 
and 

technological 
readiness of 

the enterprise 

ІI. 
Assessment 

of the 
solvency of 

the 
enterprise 

IIІ. 
Assessment 
of personnel 

support 

IV. Quality
control

assessment 

V. Assessment
of information

support 

Production 
rhythm 

Coefficient 
of financial 

stability 

Qualification 
level of 

employees 

Share of defects 
in the cost of 
production 

Completeness 
of information 

Correctness of 
information 

Coefficient of 
wear of FA 

Absolute 
liquidity 

ratio 

Productivity 
Number of 

complaints and 
claims 

Availability of 
information 

Staff 
turnover rate 

Average term of 
contract with 
counterparty FA update 

factor 

Product 
profitability 

Time 
efficiency Share of 

employees 
with higher 

and 
secondary 

special 
education 

Number of 
violations of 

labour discipline 
Number of 
unfulfilled 

orders 

Reproducibility 
of information Number of 

technological 
violations 

Security of 
information 



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is a high risk of incorrect selection of indicators  
or misinterpretation of their interrelationships.
– BSS Meisel. An easily adaptable system primarily 
designed for the service sector, banks, and financial 
institutions.
– BSS with EVA. Predominantly used in the service 
sector. It is fairly adaptable and focuses on the analysis 
of current data. The level of risk depends on the  
target function and is generally considered moderate.
– Pyramid of efficiency. Applied mainly in banks and 
small-scale production. This is an inflexible model 

focused on the analysis of past results and future 
projections. Most of its indicators are deterministic.

– ЕР2М. Moderately flexible model.
Following a comparative analysis, it was determined 

that the Kaplan-Norton balanced system of indicators 
has potential application at printing enterprises.  
This is due to the fact that it reflects indicators 
characterising both past performance results and 
current data, and is easily adapted.

The main purpose of the BSS is to reflect the 
enterprise's mission, goals and development strategy 

Figure 4. The sequence of stages of building a rating of enterprises

Source: supplemented based on data

 

 

 

 

 

Sequence of stages in the formation 
of the rating of enterprises 

Stages 

I. Preparation

II. Calculation of
assessment
indicators

III. Construction of
the rating

Content 

Characteristics of the enterprise 

Formation of a set of quality 
assessment indicators 

Indicators: qualitative, quantitative 

Indicators: absolute, relative 

Indicators: single, complex 

Calculation of the general 
indicator of the effectiveness of 

product quality management 

Construction of ranked series 

Table 2
Comparative analysis of approaches to the formation of a balanced system of indicators

Criteria Application scope Adaptability 
and flexibility Time limits Feedback Risks 

of choosing KPI

 BSS Kaplan-Norton Different scale and 
spheres of activity Easily adaptable system

Analysis of past, 
present and future 
data

There is a high risk
of incorrect selection 
of indicators 
or determination of 
their relationships

BSS Meisel
For the service sector, 
banks, financial 
institutions

Easily adaptable system Present

BSS with EVA Preferred focus 
on the service sector Fairly adaptive Analysis of current 

data
Depending on the 
objective function Moderate

Pyramid 
of effectiveness

Banks, small 
production Inflexible model Analysis of 

past results and 
prospects

Present Most indicators are 
deterministic

EP2 M Banks Moderately flexible 
model Missing High

Source: supplemented based on data



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in a system of interrelated quantitative and qualitative 
indicators. These indicators are determined through 
financial results and other non-monetary indicators 
for specific activity areas. To this end, the company 
sets strategic and mutually agreed tactical goals, which  
it must achieve within three to five years across 
four main areas: financial performance, customer 
interaction, internal processes and personnel training 
and development.

In accordance with the BSS methodology, the  
existence of a cause-and-effect relationship between 
the goals of the four components is to be expected. 
Indicators are selected and substantiated for each 
objective, and their specific values are established,  
which characterise its achievement, and which are 
entered into the so-called scorecard, the general form  
of which is given in Table 3.

The chart of accounts is a document that reflects 
the relationship between the formulation of the 
strategy and its implementation, where there is a direct 
connection between strategic, tactical and operational 
management. It reflects the process of transformation 
of intangible assets (availability of qualified, highly 
motivated employees and client information databases) 
into financial results; it also makes it possible to 
comprehensively and systematically consider the 
strategy developed by the enterprise, etc.

In accordance with the target performance indicators 
of the enterprise as a whole, target values are also 
formed for structural subdivisions. For each of these, 
a set of necessary measures aimed at achieving the goals 
is developed.

In other words, there is a cascade of indicators, with 
each department receiving its own system. Thus, the 
BSS connects the enterprise's strategic goals and the 
structural units' tactical actions. The scorecard helps 
employees to understand the company's strategy and 
overall mission, and also to connect their own goals 
with those of the company.

Each of the six components required for a balanced 
scorecard is usually formulated in greater detail. 
Indicators and target values can be set using formulas, 
measurement objects, data sources, reporting periods, 

target dates and so on. As a rule, quantitative indicators 
are used to analyse and evaluate the final results of 
the developed strategy. The factors and reasons that 
determine the final result can be represented by both 
quantitative and qualitative indicators. Initiatives 
regarding the implementation of project measures 
also require documentation of work schedules, 
determination of resources, and identification of 
potential risks and benefits.

The analysis conducted revealed that the primary 
distinction between the balanced system of indicators 
and alternative methods of evaluating management 
effectiveness lies in the simplicity of its application  
format, specifically the utilisation of a scorecard 
characterised by a limited range of indicators.  
It also emphasised the importance of considering the 
interrelation between directions and indicators, as 
well as the system's high adaptability. The scorecard 
delineates the system of indicators, illustrates the 
dynamics of development and focuses attention on 
its directions. It has been established by the scientific 
community that the primary directive in this instance 
will be the establishment of a set of key activity  
indicators, not derived from the extant list in the 
prevailing information and accounting system,  
but rather their development anew by means of 
the specification of goals in the form of indicators. 
A combination of "hard" (market share, order fulfilment 
time) and "soft" (image, customer satisfaction) 
indicators, as well as quantitative (easily measurable) 
and subjective indicators, will be appropriate.

3. Conclusions
Based on the main analysis, we highlighted the main 

advantages of a balanced system of indicators over  
other performance measurement systems, which are: 
the possibility of transferring the mission and strategy  
of the enterprise into a system of goals reflected by 
a system of interrelated indicators; the presence of 
a logical connection between individual goals, which 
involves studying the cause-and-effect relationship 
between all indicators included in the system; 

Table 3
Scorecard of the balanced scorecard

Elements Aims Cause and effect 
relationships Indicators Target values 

of indicators Activities

Finances 

Clients 
Internal processes
Training and development 
of personnel

Source: supplemented based on data



Baltic Journal of Economic Studies  

360

Vol. 11 No. 2, 2025
interrelationship of performance indicators and  
factors for increasing their efficiency.

The contemporary paradigm of quality for customers 
and consumers, the organisation of processes, 
the status and development of personnel, and so 
forth. Concurrently, the supplementary indicators 
demonstrate mutual consistency with the financial 
outcomes of the enterprise. The system's capacity to 
facilitate feedback between internal processes and 
external factors contributes to enhancing efficiency  
and attaining activity outcomes.

The formation of a balanced system of indicators 
and the selection of methods for reducing them to 
certain generalised indicators is carried out by each 
enterprise separately, depending on the specifics 
and objectives of its activities. They are subject to 
annual review in accordance with the planning cycle.  
Its main elements are goals, and indicators will  
change every year: goals may need to be refined; 
indicators may undergo changes in calculation  
methods, descriptions, reporting frequency, increase  
or decrease in the number of indicators, etc.

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Received on: 19th of April, 2025
Accepted on: 02th of June, 2025

Published on: 25th of June, 2025