Using If-Then Hypothesis Statements to Connect Balanced Scorecard Performance Measures LO12–4 The table shown below contains three performance measures for each of the four perspectives of the balanced scorecard.

Learning and Growth: Internal Business Process:

Percent of employees that strongly agree with the statement “I am consistently given the resources that I need to do my job.

Absenteeism rate Percent of employees that strongly agree with the statement “I would say that this is a great place to work.”

Throughput time Percent of customer complaints settled on first contact Cost of quality Customer: Financial:

Average gross margin per order Customer perception of operational excellence Percent of customers that strongly agree with the statement “My problem was resolved quickly.”

Net cash flow from operating activities Gross margin percentage Net profit margin percentage Required:

1. Choose one of the three learning and growth measures and write an if-then hypothesis statement that connects it to one of the three internal business process measures. Then create an if-then hypothesis statement that connects your chosen internal business process measure to one of the three customer measures. Finally, write an if-then hypothesis statement that connects your chosen customer measure to one of the three financial measures. Be sure to indicate whether each measure is expected to increase or decrease.

2. Choose one of the two remaining learning and growth measures and write an if-then hypothesis statement that connects it to one of the two remaining internal business process measures. Then create an if-then hypothesis statement that connects your chosen internal business process measure to one of the two remaining customer measures. Finally, write an if-then hypothesis statement that connects your chosen customer measure to one of the two remaining financial measures. Be sure to indicate whether each measure is expected to increase or decrease.
3. Write an if-then hypothesis statement that connects your remaining learning and growth measure to your remaining internal business process measure. Then create an if-then hypothesis statement that connects your remaining internal business process measure to your remaining customer measure. Finally, write an if-then hypothesis statement that connects your remaining customer measure to your remaining financial measure. Be sure to indicate whether each measure is expected to increase or decrease.