A Balanced Scorecard That Includes Both Strategic and Financial Performance

question 6

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)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.
• B)it entails putting equal emphasis on good strategy execution and good business model execution.
• C)a balanced scorecard approach pushes managers to avoid setting objectives that reflect the results of past decisions and organizational activities,and,instead,to set objectives that will serve as leading indicators of a company's future financial performance.
• D)it assists managers in putting roughly equal emphasis on short-term and long-term performance targets.
• E)it more or less forces managers to put equal emphasis on financial and strategic objectives.

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Definitions:

Adaptation

The process of change by which an organism or species becomes better suited to its environment.

Dynamics of Difference

The ongoing processes and factors that both distinguish and create variations among cultures, individuals, or groups.

Self-Honesty

The practice of being truthful to oneself regarding one's feelings, desires, and actions, acknowledging both strengths and weaknesses.

Cultural Competence

The ability to understand, appreciate, and interact effectively with people from different cultural backgrounds.