Table of ContentsOverview of Performance Management Challenges at Southwest AirlinesExplanation of the Balanced Scorecard ApproachApplying the BSC Approach at Southwest AirlinesFinancial PerspectiveCustomer PerspectiveInternal Process PerspectivePerspective Learning and GrowthBenefits and Limitations of Using BSC Approach for Southwest AirlinesConclusionSouthwest Airlines, a major player in the airline industry, faces many performance management challenges resulting from limited focus on financial indicators, a lack of alignment between strategic objectives and operational initiatives and an inefficient use of human resources. This essay argues that the application of the Balanced Scorecard (BSC) approach can effectively manage the performance of Southwest Airlines by addressing these challenges. This objective will be achieved through an overview of Southwest Airlines' performance management challenges, an explanation of the BSC approach, a review of its application to Southwest Airlines, and a discussion of its benefits and limitations. Say no to plagiarism. Get a Custom Essay on “Why Violent Video Games Should Not Be Banned”?Get the original essayOverview of Southwest Airlines' Performance Management ChallengesSouthwest Airlines has historically had a limited focus on financial metrics, relying often focused on operational excellence and customer service to drive financial success. This has led to challenges in understanding and maximizing its financial performance and profitability. Additionally, the airline struggled to align its strategic goals with operational initiatives, leading to inefficiencies and missed growth opportunities. Additionally, Southwest Airlines has faced challenges related to effective utilization of human resources, particularly in the areas of employee training and development and employee engagement. Explaining the Balanced Scorecard Approach The Balanced Scorecard is a strategic performance management framework that allows organizations to translate their vision and strategy into a set of performance indicators covering four key perspectives: financials, customers, internal processes, and learning and growth. This approach helps identify and measure critical success factors that drive performance and operational excellence, aligning these factors with the organization's overall strategic objectives. Application of the BSC approach to the financial outlook of Southwest Airlines. From a financial perspective, Southwest Airlines can identify and measure financial factors. measures aligned with its strategic objectives, such as revenue growth, cost control and profit margins. By setting performance targets and implementing financial control systems, the airline can effectively manage and monitor its financial performance. Customer Perspective From the customer perspective, Southwest Airlines can define key customer metrics such as customer satisfaction, loyalty, and market share. Through the analysis of customer satisfaction surveys and feedback, the airline can develop and implement strategies to improve the customer experience and improve customer loyalty. Internal Process Perspective From an internal process perspective, Southwest Airlines can identify critical internal processes for improvement, such as operational efficiency and service quality. By implementing process improvement initiatives and monitoring and evaluating, 28(5), 393-406.