Exam 15: The Balanced Scorecard: Strategic-Based Control

In the customer perspective,which is a measure that drives the creation of customer value?

For a firm to have balanced measures,what must the measures selected be balanced between?

From the customer perspective,which of the following might be considered a core objective rather than a performance value?

How can management communicate strategy? What are three methods for achieving strategic alignment? What management failure can keep strategy from being actionable?

Which of the following would be a nonfinancial measure?

Which is the most important requirement of the Balanced Scorecard?

Activity-based responsibility and strategic-based responsibility incorporate some of the same elements.However,strategic-based responsibility adds some new elements to the common dimensions.What are the elements in common and what new elements are included?

Which of the following are major enabling factors of the learning and growth perspective?

What happens once objectives and measures have been defined and communicated?

What is the definition of cycle time?

Clotheshound is a local clothing store in New England.Clotheshound has been experiencing increased competition from the national clothing chains.In an effort to improve performance,management intends to create a Balanced Scorecard.In a meeting,several measures were suggested by various managers. Management has identified a key problem.Customers are taking too long to pay their department store's charge card bills,and the company has an abnormal amount of bad debts.If this problem were solved,the company would have far more cash to invest in store improvements.Investigation has revealed that much of the problem with late payments and unpaid bills is apparently due to disputes about incorrect charges on the customer bills.Incorrect charges usually occur because sales clerks enter data incorrectly on the charge account slip. The performance measures suggested by the managers are given below: Total sales revenue Sales per square foot of floor space Sales to inventory ratio Sales per employee Sales to total assets Customer satisfaction with accuracy of charge account bills from monthly customer survey Customer wait time for service Travel expenses for buyers' trips Average age of accounts receivable Courtesy shown by junior staff members based on surveys of senior staff Unsold inventory at the end of the season as a percentage of total cost of sales Percentage of suppliers malcing just-in-time deliveries Quality of food in the staff cafeteria based on staff surveys Written-off accounts receivable as a percentage of sales Percentage of charge account bills containing errors Percentage of employees who have attended the city's cultural diversity workshop Total profit Profit per employee Percentage of salesclerks trained to correctly enter data on charge account slips Required: a.Build an integrated Balanced Scorecard using only performance measures suggested by the managers.You do not have to use all the measures,but build a Balanced Scorecard that reveals a strategy for dealing with the problems with accounts receivable and unsold merchandise. b.Construct a testable strategy by showing the causal links (with arrows)between measures in the different perspectives,and show whether the performance measure should show an increase or decrease. c.Assume that the company adopts the Balanced Scorecard.After operating for a year,there are improvements in some performance measures but not in others.What should management do next?

How can a testable strategy be constructed?

Which of the following might be a measure of employee motivation,empowerment,and alignment?

Roberts,Inc.,manufactures a product that experiences the following activities: Proces5ing (three depariments) 18 hours Moving (fau moves) 2 hours Waiting time 14 hours Storage time (before delivery) 26 hours What is the MCE for the product?