ch 10

Question 1

balanced scorecard

Answer 1

-developed by kaplan and norton in early 1990
- recognized management needed to focus on both financial and non financial measures when evaluating an organizations effectiveness
- link these measures with the goals and strategies of the organization to determine company performance
-stressed that if do the other three aspects well, financial profitability will be the end result
different focus from previously, where analyzed past financial performance and just made adjustments, this much more forward looking

Question 2

4 aspects inclue

Answer 2

1. employee’s learning and growth
2. operational efficiency/ internal business
3. customer satisfaction
4. financial profitability

Question 3

1. employee’s learning and growth

Answer 3

training hours, retention

Question 4

2. operational efficiency/ internal business

Answer 4

waste management , product turn over

Question 5

3. customer satisfaction

Answer 5

surveys

Question 6

4. financial profitability

Answer 6

roi, ri, ni

Question 7

Financial Perspective

Answer 7

common KPIs:

sales revenue growth, gross margin percentage, capital turnover, roi, residual income, earnings per share

Question 8

customer perspective

Answer 8

common KPI:
average customer satisfaction rating, percentage of market share, increase in the number of customers, number of repeat customers, rate of on time deliveries

Question 9

internal business perspective

Answer 9

common KPIs: number of new products developed, new product development time, defect rate, manufacturing lead time, yield rat e, number of warranty claims received, average customer wait time for customer service, average repair time

Question 10

learning and growth perspective

Answer 10

common KPIs:
hours of employee training, employee satisfaction, employee turnover, percentage of processes with real-time feedback, percentage of employees with access to real- time data, number of employee suggestions implemented, percentage involved in problem solving teams, employee rating of communication and corporate culture