Question

Question: Classify each of the performance measures below into the most likely balanced scorecard perspective it relates to. Label your answers using C (customer), P (internal process), I (innovation and growth), or F (financial).

1. Customer wait time

2. Number of days of employee absences

3. Profit margin

4. Number of new products introduced

5. Change in market share

6. Employee sustainability training sessions attended

7. Length of time raw materials are in inventory

8. Customer satisfaction index

9. Gallons of water reused

10. CO2 emissions

Short answer

1. Customer wait time:C

2. Number of days of employee absences:P

3. Profit margin:F

4. Number of new products introduced:I

5. Change in market share:F

6. Employee sustainability training sessions attended:I

7. Length of time raw materials are in inventory:P

8. Customer satisfaction index:C

9. Gallons of water reused:P

10. CO2 emissions:P

Step-by-step solution

Definition of Balance Scorecard

A performance metric used by the business entity for improving the internal functions of the business entity is known as the balance scored card. It helps in establishing the internal controls in the business entity.

Classification of each performance measure

Customer: A metric used in the balanced scorecard to evaluate the customer’s satisfaction level regarding price, quality, and availability of the product.

Internal Process: It includes metrics that determine the efficiency of the business operations.

Innovations and Growth: It includes assessing the training and knowledge given to employees and its use by employees to generate competitive advantage.

Financial: It includes revenue, expenses, and profit that help determine financial position.