Which area of Kaplan and Norton’s balanced business scorecard has NOT been considered?

A company is reviewing its critical success factors and key performance indicators So far. it has key performance indicators for the following

The time to deliver orders for products Consumer satisfaction with products Wastage in product production The qualifications of production employees

Which area of Kaplan and Norton’s balanced business scorecard has NOT been considered?
A . Learning and growth
B . Internal business process
C . Customer
D . Financial

View Answer

Answer: D

Explanation:

Kaplan and Norton’s balanced business scorecard is a strategic management tool that helps organisations to measure their performance across four perspectives: financial, customer, internal business process and learning and growth. The financial perspective focuses on how the organisation creates value for its shareholders and stakeholders. It includes measures such as revenue, profit, return on investment and cash flow. The customer perspective focuses on how the organization meets the needs and expectations of its customers. It includes measures such as customer satisfaction, loyalty, retention and market share. The internal business process perspective focuses on how the organisation delivers its products and services to its customers. It includes measures such as quality, efficiency, productivity and innovation. The learning and growth perspective focuses on how the organisation develops its capabilities and competencies to achieve its goals. It includes measures such as employee skills, knowledge, motivation and empowerment. Therefore, option D is the correct answer, as financial measures have not been considered in the given list of key performance indicators. Option A is not correct, as learning and growth measures have been considered in the qualifications of production employees. Option B is not correct, as internal business process measures have been considered in the time to deliver orders for products and wastage in product production. Option C is not correct, as customer measures have been considered in consumer satisfaction with products.

Reference: BCS Practitioner Certificate in BAP Specimen, page 17.