Kaplan and Nortons balanced scorecard

Question 1

what does it measure

Answer 1

analyses overall performance of a business

Question 2

what are the 4 sectors

Answer 2

financial
customer
internal business processes
learning and growth

Question 3

financial

Answer 3

objective: increase liquidity
measure: current ratio
target: 2:1
initiatives : increase payable days and decrease receivable days

Question 4

customer

Answer 4

objective: increase ‘on time’ delivery
measure: within 24 hours
target: 95% of orders
initiatives: increase warehouse automation

Question 5

internal business processes

Answer 5

objective: reduce labour turnover
measure: yearly labour turnover
target: 30%
initiatives: offer market leading pay

Question 6

learning and growth

Answer 6

objective: reduce product development times
measurement: release times
target: reduce average time by 50%
initiative: more lean design

Question 7

why is this scorecard good for businesses

Answer 7

.gives a clearer idea if business is achieving its strategy
. used to create targets which are quantifiable