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Balanced Scorecard
1. Explain in your own words, what is the Balanced Scorecard and what it is supposed to accomplish.
2. What, according to Kaplin and Norton, are the four perspectives included in the scorecard? Describe each perspective and explain how they are “balanced”.
3. The textbook asserts that a good balanced scorecard contains both leading and lagging measures. Why, according to the text, is it good to have both in the balanced scorecard? Do you agree or disagree? Explain.
4. Under what perspective of the balanced scorecard would you classify each of the measurements in the following table? Are they leading or lagging measurements? Explain why? Measurement/metric Perspective (from Kaplin & Norton’s four perspectives) Leading or lagging? On-time delivery to customers Time to develop the next generation of products Manufacturing yield Engineering efficiency Quarterly sales growth Percent of products that equal 70% of sales Cash flow Number of customer partnerships Increase in market share Unit cost of products
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