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:

Groupthink

A phenomenon where the desire for group consensus and cohesiveness leads to poor decision-making processes and outcomes.

Maintaining Harmony

The act of keeping relationships or environments peaceful and cooperative.

Critically Thinking

The process of actively and skillfully conceptualizing, applying, analyzing, synthesizing, and evaluating information to reach an answer or conclusion.

Storming Stage

A phase in group development characterized by conflict and competition as members assert their opinions and vie for positions within the group.