Internal Business Process Measures and Customer Value Propositions LO12–1 The table shown below contains a variety of performance measures that companies might use as internal business process measures in their balanced scorecards. Each measure is accompanied by a + or − to indicate whether the performance measure should increase or decrease over time.

Required:

For each measure, place an X in one of the first three columns to indicate whether the measure would most likely be adopted by a company pursuing a strategy focused on operational excellence, product leadership, or customer intimacy. In the fourth column, provide an explanation for your answer.

Item Operational Excellence Product Leadership Customer Intimacy Explanation Ex. Number of patents approved X Patents often provide the foundation for delivering new and innovative products to customers.
1. Delivery cycle time (−)
2. Number of new products designed (+)
3. Average contact hours per customer (+)
4. Non-value-added activity costs (−)
5. Percent of suppliers with long-term contracts (+)
6. Number of modular product designs (+)
7. Number of customized products co-designed with customers (+)
8. Defect-free units as a percentage of completed units (+)
9. Number of options available for customers to choose from (+)