Business Performance Management Balanced Scorecard Framework

Question 1

Who developed the Balanced Scorecard framework?

Accepted Answer

Robert Kaplan and David Norton

Answer

Robert Kaplan and David Norton introduced the Balanced Scorecard in a 1992 Harvard Business Review article.

Question 2

Which of the four Balanced Scorecard perspectives asks 'How do we look to shareholders?'

Accepted Answer

Financial perspective

Answer

The financial perspective evaluates performance from the shareholder's viewpoint, focusing on profitability, revenue growth, and cost efficiency.

Question 3

What is the primary advantage of the Balanced Scorecard over purely financial performance measurement?

Accepted Answer

It incorporates non-financial drivers that lead to future financial success

Answer

The Balanced Scorecard complements financial measures with non-financial perspectives like customer satisfaction and internal processes that drive future performance.

Question 4

In the Balanced Scorecard, the 'Learning and Growth' perspective focuses on:

Accepted Answer

Employee capabilities, culture, and technology infrastructure

Answer

The learning and growth perspective addresses the organizational capabilities — human capital, systems, and culture — needed to execute strategy.

Question 5

A 'strategy map' in the Balanced Scorecard context is used to:

Accepted Answer

Visualize cause-and-effect relationships between strategic objectives across perspectives

Answer

A strategy map shows how objectives in each Balanced Scorecard perspective link together to create value and drive financial outcomes.

Business Performance Management Practice Test

Business Performance Management Practice Test

Business Performance Management Balanced Scorecard Framework