Kaplan & Norton Balanced Scorecard

Question 1

What is K&N balanced scorecard

Answer 1

A system to analyse the financial and non financial performance of a business from a range of stakeholder perspectives

Question 2

What are the 4 areas around the business vison and strategy

Answer 2

• Financial (ROCE, profitability)
• internal business practices (speed of response, L.P, Payables, receivables
• learning & growth (is business developing for the future)
• impact of customers

Question 3

What are the elements in each measure to consider

Answer 3

• Stakeholders
• measures
• obj
• strategy

Question 4

3 adv of K & N balanced scorecard

Answer 4

• encourages systematic approach to reviewing performance & creating new strategy
• encourages a range of perspective ^ motivation/ satisfaction
• encourages long term approach To decision making

Question 5

3 disadv of balanced scorecRd

Answer 5

• time consuming & expensive
• difficult to balance one stakeholder against another = conflict
• difficult to differentiate targets due to clashes