Question

Consider the following key performance indicators, and classify each according to the balanced scorecard perspective it addresses. Choose from financial perspective, customer perspective, internal business perspective, or learning and growth perspective.

a. Number of employee suggestions implemented

b. Revenue growth

c. Number of on-time deliveries

d. Percentage of sales force with access to real-time inventory levels

e. Customer satisfaction ratings

f. Number of defects found during manufacturing

g. Number of warranty claims

h. Return on investment

i. Variable cost per unit

j. Percentage of market share

k. Number of hours of employee training

l. Number of new products developed

m. Yield rate (number of units produced per hour)

n. Average repair time

o. Employee satisfaction

p. Number of repeat customers

Short answer

A	Learning and Growth
B	Financial Perspective
C	Internal Business
D	Internal Business
E	Customer
F	Internal Business
G	Internal Business
H	Financial Perspective
I	Financial Perspective
J	Financial Perspective
K	Learning and Growth
L	Internal Business Perspective
M	Internal Business Perspective
N	Internal Business Perspective
O	Learning and growth
P	Customer

Step-by-step solution

Part a Number of employee suggestions implemented

The number of employee suggestions implemented comes under the learning and growth perspective. Learning and growth perspective of balanced includes all the activities which tell about the capabilities of the employee, information system, and the company’s climate for action.

Part b Revenue growth

The revenue growth will be classified from a financial perspective. This is so because the growth in the revenue will provide the information about the finances of the company to the investors and the creditors.

Part c Number of on-time deliveries Internal Business

The number of on-time deliveries will come under the internal business. This is because the internal business perspective includes the operations of the business. Lean and effective internal operations allow the company to meet customers’ needs and expectations and remain competitive.

Part d Percentage of the sales force with access to real-time inventory levels Internal Business

The percentages of the sales force with access to real-time inventory levels will also be classified under the internal business perspective. It is an important factor of the internal business perspective.

Part e Customer satisfaction ratings

Customer satisfaction ratings come under the customer perspective balanced scorecard. The evaluation of the customer satisfaction rating is critical to achieving the financial goals of the company outlined in the financial perspective of the balanced scorecard.

Part f Number of defects found during the manufacturing Internal Business

The number of defects found during the manufacturing will come from an internal business perspective. It will come to the operations of the business which is a very important factor in the internal business perspective.

Part g Number of warranty claims

The warranty claims come under the category of Internal business perspective. This is because the warranty claims are the post-sales services by the company to their customers .

Part h Return on investment

The return on investment will be considered from the financial perspective as return on investment means how much income investment is generating, which is very useful information for the investors.

Part i Variable cost per unit Financial

The variable cost per unit will come under the financial perspective as the variable cost per unit is computed to get the information on the cost incurred by the company on producing the goods.

Part j Percentage of market share

The percentage of market share will be classified into the financial perspective of the balanced scorecard. This will tell the investors and creditors of the company about the performance of the company in the marketplace.

Part k Number of hours of employee training

The number of hours of employee training will come under the learning and growth perspective. Learning and growth will show information about the capabilities of the employee.

Part l Number of new products developed Internal Business

The number of new products will come from an internal business perspective. There are factors that are there in an internal business perspective and one of them is innovations which means making new products.

Part m Yield rate (number of units produced per hour)

The number of units produced per hour will also come from an internal business perspective as it comes under the operations of the company.

Part n Average repair time Internal Business

The average repair time will also come the internal business as it will come under the post-sales service provided by the company to customers.

Part o Employee satisfaction

Employee satisfaction will come under the learning and growth perspective as it is related to the employees of the business.

Part p Number of repeat customers

The number of repeat customers will be classified from the customer perspective as this perspective tells us about how the customer sees the company. If the company has a good image then the customer will come back to the company again.