Exam 11: Performance Evaluation Revisited: a Balanced Approach

A performance dashboard is a visual display of the key measures related to an organization's operational goals and strategies.

Which of the following strategies relate to the financial perspective?

Even if an organization relies solely on one performance measurement,it cannot easily be misled into thinking all is well,when in reality,all is not well.

Which of the following is $\textbf{ not }$ a measure that relates to the customer perspective?

For processes that are not identical,companies cannot benefit from benchmarking outside their industry.

A management tool that integrates performance measures across four different perspectives to guide operations toward achieving an organization's strategy is called

Identifying whether a measure is a leading or lagging indicator can be difficult,because a lagging indicator of one event can be a leading indicator of another.

The key to using key performance indicators to drive performance is to understand the cause-and-effect relationships they represent.

Measuring and evaluating performance is important to managers.They need to explore how individual and performance measures and other measures can be combined to create a better tool for measuring past performance and driving the future achievement of strategic goals. Required: Define the following terms and give one example of each that you can use in this class. a. Lagging indicator b. Leading indicator c. Nonfinancial measure d. Benchmarking e. Best practices

As a measure of a salesperson's performance,"corporate profit margin" is an example of an actionable measure.

The steps involved in building a balanced scorecard are

The first step in developing a balanced scorecard is to clarify the strategic focus.As part of the process,many organizations develop a strategy map.Assume you are asked by your supervisor to develop a strategy for your organization.You have determined that the following strategies have been established by the company. $\bullet$ Achieve operational excellence $\bullet$ Develop trained workforce $\bullet$ Infuse corporate culture of quality throughout workforce $\bullet$ Develop reputation for quick turnaround $\bullet$ Retain and grow customer base $\bullet$ Manage customer relationships $\bullet$ Increase profit Required: Prepare a strategy map using the four balanced scorecard perspectives.

Lagging indicators can be used to predict future results.

A performance measure is actionable if

Before a balanced scorecard can be developed,managers must

Benchmarking $\textbf{ does not }$ require an organization to share

Which of the following does benchmarking focus on?

A measure is relevant if it

Margie's Flower Shop is interested in improving her performance in the area of financial areas.This interest came about after Margie had her year-end financial statements prepared and,although she had net income,her cash flow was inadequate.Margie has discussed her problems with her neighboring store,an auto supply retail store. Required: List five financial processes that Margie and the auto supply business have in common.

A performance dashboard is a management tool that integrates performance measures performance across four different perspectives dashboard to guide operations toward achieving an organization's strategy.