Balanced Scorecard Flashcards
1
Q
Four Focuses
A
Financial
Customer
Internal Processes
Organisational Capacity
2
Q
Financial performance
A
KPIs-
ROI
Operating margin
3
Q
Customer
A
KPIs-
Level of returns
Service rating
4
Q
Internal Processes
A
KPIs-
New product lead time
Unit costs
5
Q
Knowledge and innovation
A
KPIs-
Employee retention
6
Q
Benefits of Balanced Scorecard
A
-Broader view of business performance
-Links performance to the long term (visions and missions)
-Involves everyone in the business (not just financial stakeholders)
-Highly flexible, KPIs chosen by the business
7
Q
Drawrbacks
A
-Danger of too many KPIs (hard to manage)
-Need to have balance between the four perspectives-not easy
-Senior management may still be too concerned with financial performance
- Needs to be updated to be useful
