The Balanced Scorecard

Question 1

BSC Negatives

Answer 1

• cause and effect issues
• absence of time dimensions
• lacking in academic, theoretical, and empirical support
• can be complex and difficult to implement
• ignores social, environmental, and employee perspectives

Question 2

BSC three stage premise

Answer 2

1) Learning improves business processes
2) Improved business processes improve customer satisfaction
3) Improved customer satisfaction improves financial results

Question 3

Balanced Scorecard Perspectives

Answer 3

1) Financial (How do we look to shareholders?)

2) Customer (How do we look to customers?)

3) Internal Processes (How do we excel 1, 2

4) Learning & Growth (How to continue improvement and create value?)

Question 4

BSC criteria on Perspectives

Answer 4

Objectives
Measures
Targets
Initiatives

Question 5

BSC Overload on Perspectives

Answer 5

Each perspective is recommended to have no more than 4/5 criteria in order to prevent informational overload.

Question 6

Internal Process Measure

Answer 6

• Manufacturing Cycle Efficiency

MCE = Processing Time/( Processing, inspection, wait, and move time)

• Post Sales Service Process

Includes repairs, warranty etc..

Question 7

Learning and Growth Objectives

Answer 7

Capabilities

IS Capabilities

Motivation

Empowerment

Alignment

Question 8

Outcomes are what kind of measure

Answer 8

Lag Measures

(Predominately financial, but can be non fin)

Question 9

Performance Drivers are;

Answer 9

Lead Measures…

(tend to be non fin, which lead to financial lag measures)

Question 10

The Relationship between Four BSC perspectives, objectives and their related measures are;

Answer 10

Cause and effect

Question 11

BSC Benefits

Answer 11

• Communication Improvement
• Greater Performance Measure Numbers
  fin and non fin
• A way of Strategy Implementation
• Links measures together logically
• Rationalizes non fin lead indicators
• Focuses on only critical Perspectives