Question

Kaplan and Norton's balanced scorecard approach includes financial indicators and proposes three other categories, or perspectives, for measuring performance. Which two of the following criteria are not derived from the perspectives of the balanced scorecard?

Options:
a. Customer satisfaction and internal business processes
b. Learning and growth and financial indicators
c. Innovation and internal business processes
d. Customer satisfaction and innovation

Answer 1

The two criteria not derived from the Balanced Scorecard's perspectives are innovation and internal business processes, but innovation can be linked to the learning and growth category. Therefore, the correct option is D.

Step-by-step explanation:

The Balanced Scorecard approach by Kaplan and Norton includes four perspectives for measuring performance: financial indicators, customer satisfaction, internal business processes, and learning and growth. Based on these categories, the two criteria that are not derived directly from the perspectives of the Balanced Scorecard are innovation and internal business processes. It should be noted, however, that innovation can be considered part of the learning and growth category, as it often results from an organization's efforts to foster continuous improvement and the development of new capabilities. Therefore, the correct answer to the student's question is option d: customer satisfaction and innovation.