What is a balanced scorecard quizlet?
Balanced Scorecard. a strategic-based performance management system that typically identifies objectives and measures for four different perspectives: the financial perspective, the customer perspective, the process perspective, and the learning and growth perspective.
Which of the following is a financial performance measure at an organizational level?
Budget variance is a financial performance measure at an organizational level. Customer ratings of goods and services are quality performance measurements at an operational level. Employee satisfaction and employee turnover are examples of flexibility measures at an organizational level.
What are the Balanced Scorecard’s typical key elements?
The four perspectives of a balanced scorecard are learning and growth, business processes, customer perspectives, and financial data. These four areas, which are also called legs, make up a company’s vision and strategy.
What are the three components of the learning and growth perspective in the balanced scorecard?
There are three key areas of focus when developing objectives and measures for the Learning and Growth perspective and they are: human capital, information capital, and organizational capital.
What are four major perspectives of balanced scorecard?
The four perspectives of a traditional balanced scorecard are Financial, Customer, Internal Process, and Learning and Growth.
What is the balanced scorecard approach?
The balanced scorecard is a management system aimed at translating an organization’s strategic goals into a set of organizational performance objectives that, in turn, are measured, monitored and changed if necessary to ensure that an organization’s strategic goals are met.
What is a financial performance measure at an operational level?
In the context of the scope of business and operations performance measurement, ________ is an organizational-level productivity and operational efficiency measure. equipment utilization. is a financial performance measure at an operational level.
Which of the following is the purpose of a balanced scorecard?
The balanced scorecard (BSC) is a strategic planning and management system. Organizations use BSCs to: Communicate what they are trying to accomplish. Align the day-to-day work that everyone is doing with strategy.
What is meant by balanced scorecard?
A balanced scorecard (BSC) is defined as a management system that provides feedback on both internal business processes and external outcomes to continuously improve strategic performance and results.
Why does the balanced scorecard include financial performance measures as well as measures of how well internal business processes are doing?
Why does the balanced scorecard include financial performance measures as well as measures of how well internal business processes are doing? The balanced scorecard is put together to support the organization’s strategy, which is used to further the company’s goals.
What is financial perspective of the balanced scorecard?
The financial perspective indicates whether the company’s strategy and operations add value to shareholders. For organisations that do not have shareholders, the financial perspective indicates how well the strategy and operations contribute to improving the organisation’s financial health.
Why does balanced scorecard include financial performance measures as well as measures of how well internal business processes are doing?
What is the Balanced Scorecard approach to measuring performance?
The balanced scorecard considers only financial performance measures. Financial performance measures are known as lag indicators. A lag indicator is a performance measure that predicts future performance. Customer satisfaction, operational efficiency, and employee excellence are often measured as part of the balanced scorecard approach.
When was the balanced scorecard published?
Was first published in 1992 by Kaplan and Norton, a book followed in 1996. Traditional performance measurement that only focus on external accounting data are obsolete. The approach is to provide ‘balance’ to the financial perspective. Why Use a Balanced Scorecard? Improve organizational performance by measuring what matters
What is the purpose of a scorecard?
The scorecard enables companies to monitor and measure the success of their strategies to determine how well they have performed. The balanced scorecard acts as a structured report that measures the performance of company management. The management team can be evaluated against Key Performance Indicators (KPIs)
What happens when the Balanced Scorecard fails to work?
The balanced scorecard can only translate a company’s strategy into specific measurable objectives. A failure to convert improved operational performance, as measured in the scorecard, into improved financial performance should send executives back to their drawing boards to rethink the company’s strategy or its implementation plans.