List the four perspectives of the balanced scorecard and describe each.
Textbook:
Please identify the four perspectives. Thank you!
FIGURE 12-8. BALANCED SCORECARD PERSPECTIVES measurable, easy to comprehend, timely, and insightful. The BSC includes four perspectives that are uniquely connected. Figure 12-8 presents these perspectives. which can lead to improved customer loyalty, which ultimately can lead to an increase in brand recognition. All of these actions can be measured with a KPI. For instance, brand loyalty could be measured with a survey administered using Qualtrics. The Balanced Scorecard (BSC) is a popular, well-known BPM framework. It helps put The BSC "balances" two types of KPIs, or "indicators" that signal either that a company is accomplishing its goals or is on the right track to achieving them. These two types of indicators are: - Lagging indicators - KPIs that describe what has happened in the past. These indicators offer the most concrete way to determine whether the company has an organization's mission front and center and translates it into tangible measures and actions. It also helps to mobilize employees to channel their energies, abilities, and knowledge toward achieving the company's mission. The BSC promotes a forward-looking, proactive organization instead of a reactive organization, which only changes course when things go wrong. To implement the BSC, managers across the company articulate goals for various aspects of their operations and then identify appropriate KPIs that will track performance toward those goals. To make sound business decisions, KPIs need to be relevant to long-term objectives, training hours, labor utilization, product quality, rework, and billable hours. The main tool for the BSC is the strategy map, which shows cause-and-effect relationships among the four perspectives and tells the story of how value is created in the organization. Figure 12-9 shows an example of a strategy map, which is read from the bottom up. Each indicator is tied to a KPI, and each indicator rolls up to the next level and ultimately should improve the overall financial goals of the company. The strategy map can be explained by the following: an increase in training hours for sales and delivery personnel can lead to an increase in revenue per sales employee, accomplished its goals, but in isolation they tell an incomplete story of business performance. Examples include \% change in: revenue, profit, inventory turnover, and number of customers. Leading indicators - KPIs that force a company to identify the activities that can help achieve goals faster and more effectively. These indicators are called "drivers" in the BSC. Leading indicators are necessary, as poor performance in them could signal a future decline in business performance even though lagging indicators look good. Examples include: employee
