Business planning and strategy-Kaplan&Nortons Balanced Scorecard model

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What is the balanced scorecard?
A system of corporate appraisal which looks at financial/non-financial elements from a variety of perspectives
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What is the user provided with?
A set of information which addresses all relevant areas of performance in an objective and unbiased fashion.
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What does the balanced scorecard provide?
Provides a relevant range of financial/nonfinancial information that supports effective business management
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What are the 4 perspectives in the balanced scorecard?
-Financial
-Internal business processes
-Learning and growth
-Customer
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What does the finance perspective show?
Sources of finance, product development growing into markets
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What does the internal business processes perspective show?
Purchasing,warehousing,documentation,
managing stock&IT services
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What does the customers perspective show?
Quality,market research, trends,technology
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What does the learning and growth perspective show?
Data collection, succession planning, professional development and competition
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Who uses the balanced scorecard ?
-Businesses
-Governments
-Social enterprises

(to help make decisions to reflect the vision of the business)
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What are 3 advantages of using a balanced scorecard?
-Helps business grow by looking at 4 key areas to increase customers/market share

-Makes strategy operational by translating it into performance measures/targets


-Shows both qualitative&quantitative issues
(more realistic )
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What are 3 disadvantages of the balanced scorecard?
-Needs to have balance between the 4 perspectives(not easy)
-Senior management may still be too concerned with financial performance
-Needs to be updated regularly to be useful
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What are 3 factors that may influence the successful implementation of the balanced scorecard?
-Communication
(ensure everyone in on same page)
-Team work
(Effective teamwork)
-Commitment
(long-term commitment/time to prep)
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Other cards in this set

Card 2

Front

What is the user provided with?

Back

A set of information which addresses all relevant areas of performance in an objective and unbiased fashion.

Card 3

Front

What does the balanced scorecard provide?

Back

Preview of the front of card 3

Card 4

Front

What are the 4 perspectives in the balanced scorecard?

Back

Preview of the front of card 4

Card 5

Front

What does the finance perspective show?

Back

Preview of the front of card 5
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