Techniques.Balanced Scorecard

Question 1

_____ is used to manage performance in any business model, organizational structure, or business process.

Answer 1

The balanced scorecard is used to manage performance in any business model, organizational structure, or business process.

International Institute of Business Analysis. A Guide to Business Analysis Body of Knowledge® (BABOK® Guide) (Section 10.3, Kindle Locations 6090-6091). International Institute of Business Analysis. Kindle Edition.

Question 2

The balanced scorecard is composed of what [4] dimensions or drivers of growth?

Answer 2

The balanced scorecard is composed of four dimensions or drivers of growth:

1. Learning and Growth
2. Business Process
3. Customer
4. Financial.

International Institute of Business Analysis. A Guide to Business Analysis Body of Knowledge® (BABOK® Guide) (Section 10.3, Kindle Locations 6096-6102). International Institute of Business Analysis. Kindle Edition.

Question 3

Each dimension on the balanced scorecard includes _____, _____, _____ and _____ derived from an organization’s vision and strategy.

Answer 3

Each dimension on the balanced scorecard includes objectives, measures, and outcomes and initiatives derived from an organization’s vision and strategy.

International Institute of Business Analysis. A Guide to Business Analysis Body of Knowledge® (BABOK® Guide) (Section 10.3, Kindle Locations 6103-6104). International Institute of Business Analysis. Kindle Edition.

Question 4

What are the two types of measures used in balanced score cards?

Answer 4

There are two basic types of measures or indicators: lagging indicators that provide results of actions already taken and leading indicators that provide information about future performance.

International Institute of Business Analysis. A Guide to Business Analysis Body of Knowledge® (BABOK® Guide) (Section 10.3.3, Kindle Locations 6123-6124). International Institute of Business Analysis. Kindle Edition.

Question 5

In order for measures to be meaningful, they should be ____, ____, and _____.

Answer 5

In order for measures to be meaningful they should be quantitative, linked to strategy, and easily understood by all stakeholders.

International Institute of Business Analysis. A Guide to Business Analysis Body of Knowledge® (BABOK® Guide) (Section 10.3.4, Kindle Locations 6127-6128). International Institute of Business Analysis. Kindle Edition.

Question 6

True or False: Each dimension on a balanced scorecard and is affected by the others.

Answer 6

True, each dimension affects and is affected by the others.

International Institute of Business Analysis. A Guide to Business Analysis Body of Knowledge® (BABOK® Guide) (Section 10.3.4, Kindle Location 6130). International Institute of Business Analysis. Kindle Edition.

Question 7

What are the [4] strengths of Balanced Scorecards?

Answer 7

Strengths of Balanced Scorecards:

1. Facilitates holistic and balanced planning and thinking.
2. Short-, medium-, and long-term goals can be harmonized into programs with incremental success measures.
3. Strategic, tactical, and operational teams are more easily aligned in their work.
4. Encourages forward thinking and competitiveness.

International Institute of Business Analysis. A Guide to Business Analysis Body of Knowledge® (BABOK® Guide) (Section 10.3.4, Kindle Locations 6135-6141). International Institute of Business Analysis. Kindle Edition.

Question 8

What are the [3] limitations of Balanced Scorecards

Answer 8

The [3] limitations of Balanced Scorecards are:

1. A lack of a clear strategy makes aligning the dimensions difficult.
2. Can be seen as the single tool for strategic planning rather than just one tool to be used in a suite of strategic planning tools.
3. Can be misinterpreted as a replacement for strategic planning, execution, and measurement.

International Institute of Business Analysis. A Guide to Business Analysis Body of Knowledge® (BABOK® Guide) (Section 10.3.4, Kindle Locations 6143-6147). International Institute of Business Analysis. Kindle Edition.