Setting Up Benchmarks For Measuring Performance And Balanced Scorecards


1. Organizations often design systems of Balanced Scoreboards (BSCs) at several levels (corporate, divisional, business unit and department). Upper and lower levels can be linked directly, logically or by a BSC perspective. Which one of the following statements describes logical linking?

A. Measures from upper and lower level scoreboards are related because they fall into the same perspective.
B. Measures in lower level scorecards can be added to provide top level scorecard
C. Measures from lower levels are designed with the expectation that they will influence higher level measures.
D. Measures from lower levels are functionally linked to higher levels.

2.  When determining the performance measures to use for benchmarking, organizations should ensure that the performance measures:

A. are characterized by lower levels of aggression
B. are independently audited to ensure accuracy
C. can be related directly to profit
D. are characterized by higher levels of aggression


These multiple choice questions belong to Corporate Strategy and the 1st question discusses about balanced scorecards or BSCs designed by organizations and the 2nd question is about setting up the benchmarks for measuring performance.

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