Question
The balanced scorecard (BSC)approach involves setting objectives and developing appropriate measures and targets on four main areas. Which of the following is NOT one of those areas: Leverage Financial returns Customers Internal business processes Staff development and business growth
Answer
4.4
(373 Votes)
Phillip
Master · Tutor for 5 years
Answer
Leverage.
Explanation
## Step 1:There are four key perspectives that make up the Balance Scorecard (BSC) conceptual framework developed by Drs. Robert Kaplan and David Norton in order to have a comprehensive understanding of an organization's performance. ## Step 2:The four main areas in BSC paradigm are: 1. **Financial Returns**: These impact the business revenue and economic values. 2. **Customers**: The objectives focus on achieving customer delight by offering them superior and profitable growth strategies. 3. **Internal Business Processes**: Ensuring operational effectiveness and efficiency. 4. **Staff Development and Business Growth (Learning and Development)**: This criteria uses continuous learning strategy and business adaptation to promote staff engagement, motivation and retention.## Step 3:Upon closely examining these four perspectives, "Leverage" is not directly one of these perspectives indicated in the BSC framework given the options. While leverage ratios and other financial efforts may contribute to financial return, it is not a perspective in itself according to Kaplan and Norton’s perspective.