Kaplan and Norton Flashcards
1
Q
What is Kaplan and Norton’s balanced scorecard?
A
A business model used to analyse the overall performance of a business
2
Q
What are the four perspectives of performance on the model?
A
- Financial
- Customer
- Internal processes
- Organisational capacity
3
Q
What does the financial perspective focus on?
A
Financial performance
4
Q
What does the customer perspective focus on?
A
Customer satisfaction
5
Q
What does the internal processes perspective focus on?
A
Business efficiency
6
Q
What does the organisational capacity perspective focus on?
A
Knowledge and innovation
7
Q
State three advantages of Kaplan and Norton’s balanced scorecard
A
- Highly flexible
- Involves everyone in the business
- Looks at the long term
8
Q
State three disadvantages of Kaplan and Norton’s balanced scorecard
A
- Can be hard to find balance between the four perspectives
- Senior management may still be too concerned with financial performance
- Needs to be updated regularly
