Chapter 5: Business Measures

Question 1

Balanced Scorecard (1996 - Kaplan & Norton)

Answer 1

1. Financial: Shareholder value & Bottom Line. Best predictor of health.
2. Customer: Value proposition. How effective the org. is in creating value. (Hard to obtain and required interpretation to understand stated and unstated needs).
3. Internal Business: All processes designed to create & deliver value. Best predictor of #2)
4. Learning & Growth: Ability to develop skills and capabilities in org to deliver and improve # 3 (HR & IT are key aspects)