13 - Non-Financial Business Indicators

Question 1

What are the four elements of the balances scorecard?

Answer 1

Financial Perspective, Customer perspective, Internal business processes, Innovation and learning

Question 2

Explain the financial perspective of the balanced scorecard.

Answer 2

Looking at if the financial performance of a business is keeping its shareholders happy. For example, looking at profitability ratios or gross profit margin.

Question 3

Explain the customer perspective of the balanced scorecard.

Answer 3

Looking at whether you have kept your customers happy by offering quality products or services. For example, you could look at how many repeat customers you have had or whether you customer feedback has been positive.

Question 4

Explain the internal business perspective of the balanced scorecard.

Answer 4

Looking at whether the internal processes of the business are being run effectively to ensure resources are also being used effectively. For example, looking at the average time taken to fulfil orders or the number of customers queries dealt with by each member of staff.

Question 5

Explain the innovation and learning perspective of the balanced scorecard.

Answer 5

Looking at whether we are investing in the future of the business. For example, looking at the number of new products introduced each year to the amount of time each staff member spends being trained each month.