A "Balanced Scorecard" That Includes Both Strategic and Financial Performance

question 82

Multiple Choice

A "balanced scorecard" that includes both strategic and financial performance targets is a conceptually strong approach for judging a company's overall performance because

• A)it assists managers in putting roughly equal emphasis on short-term and long-term performance targets.
• B)it entails putting equal emphasis on good strategy execution and good business model execution.
• C)a balanced-scorecard approach pushes managers to avoid strategic management that reflects the results of past decisions and organizational activities.
• D)financial performance measures are lagging indicators that reflect the results of past decisions and organizational activities, whereas strategic performance measures are leading indicators of a company's future financial performance and business prospects.
• E)it forces managers to put equal emphasis on financial and strategic objectives.

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Definitions:

Diagnosing Causes

The process of identifying the underlying factors or reasons behind a specific problem, situation, or symptom.

Performance Problems

Issues affecting the efficiency and effectiveness with which job duties are performed.

Total-quality Management

A comprehensive approach to organizational management that seeks to improve the quality of products and services through ongoing refinements in response to continuous feedback.

Meaningful Feedback

Constructive and detailed feedback that is valuable to the recipient, aiding in performance improvement and personal development.