13.7 The balanced scorecard as a strategic control method

Question 1

Kaplan & Norton (1992) first developed the concept of a balanced scorecard. A balanced scorecard takes a structured approach requiring us to consider our organisation t____ and then the strategic c______ envisaged from a number of formalised perspectives.

Answer 1

today

changes

Question 2

The original balanced scorecard approach uses four key perspectives:
1 C\_\_\_\_\_\_ perspective
2 Internal b\_\_\_\_\_\_ perspective
3 Innovation and l\_\_\_\_\_ perspective
4 F\_\_\_\_\_\_\_\_ perspective

Answer 2

Customer
Business
Learning
Financial

Question 3

How does the “balanced scorecard” approach improve upon the traditional focused financial approach?

Answer 3

Balanced scorecard considers other factors in addition to financial measures. For example, it will typically involve consideration of the customer, employee and compliance perspectives.

Question 4

Alternate methods similar to the “balanced scorecard” approach include:

• the results and d_________ framework (Fitzgerald & Moon 1991) and
• the E______ quality framework management model

Answer 4

determinants

European

Question 5

Who designed the “balanced scorecard” model?

Answer 5

Kaplan & Norton (1992)

Question 6

What are the four principles of the balanced scorecard?

Answer 6

Customer perspective
Internal business perspective
Innovation and learning perspective
Financial perspective

Question 7

Who developed the “results and determinants” framework?

Answer 7

Fitzgerald & Moon (1991)

Question 8

What are the “results” and “determinants” within the results and determinants framework?

Answer 8

Results

• financial performance
• competitive positioning and market alignment

Determinants

• quality
• flexibility
• resource utilisation
• innovation