Balanced Scorecard

Question 1

What are the 4 BSC perspectives?

Answer 1

All 4 are related to mision, vision and strategy.

1. Financial
2. Customer
3. Process
4. Learning & growth

Question 2

Explain the financial perspective of BSC.

Answer 2

What financial performance should we deliver for our shareholders?

Question 3

Explain the customer perspective of BSC.

Answer 3

To achieve our vision and financial objectives, how must we deliver value to our customers?

Question 4

Explain the process perspective of BSC.

Answer 4

To meet our financial and customer objectives, at which processes must we excel?

Question 5

Explain the learning & growth perspective of BSC.

Answer 5

How do we align and enhance our intangible assets to improve the critical processes?

Question 6

What is SMART and what does it stand for?

Answer 6

SMART is a concept for setting targets.

S = specific
M = measurable
A = achievable
R = relevant
T = time-bound

Your target must contain all of these elements instead of just e.g. improve customer service.

Question 7

What is an objective?

Answer 7

A statement i 3 to 5 sentences which aims to describe what the strategy is trying to achieve.

It uses action phrases (verb + noun).

E.g. Achieve fast ground turnaround.

One objective can have multiple measures (e.g. different measures for different people/departments).

Question 8

What is a measure?

Answer 8

Builds on the objective and tells how success/failure is measured.

E.g.
- time at gate
- on-time departure

One objective can have multiple measures (e.g. different measures for different people/departments).

Question 9

What is a target?

Answer 9

Puts numbers to the measures.

E.g. (measure -> target)
Time at gate -> 30 minutes
On-time departure -> 90%

Question 10

What is an action plan?

Answer 10

Explains how we meet our objectives -> measures -> targets.

E.g. Co-pilots clean up airplane.