The following if-then statements were taken from a Balanced Scorecard: a. If employee capabilities increase, then process time decreases. b. If process time decreases, then customer retention will increase. c. If customer retention increases, then market share will increase. d. If market share increases, then revenues will increase. Required: 1. Identify the lead and lag variables, and explain your reasoning. 2. Discuss the implications of Requirement 1 for the financial and learning and growth perspectives. 3. Using the first if-then statement, explain the concept of double-loop feedback.

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Cornerstones of Cost Management (C...

4th Edition
Don R. Hansen + 1 other
Publisher: Cengage Learning
ISBN: 9781305970663
BuyFind

Cornerstones of Cost Management (C...

4th Edition
Don R. Hansen + 1 other
Publisher: Cengage Learning
ISBN: 9781305970663

Solutions

Chapter 13, Problem 11E
Textbook Problem

The following if-then statements were taken from a Balanced Scorecard:

  1. a. If employee capabilities increase, then process time decreases.
  2. b. If process time decreases, then customer retention will increase.
  3. c. If customer retention increases, then market share will increase.
  4. d. If market share increases, then revenues will increase.

Required:

  1. 1. Identify the lead and lag variables, and explain your reasoning.
  2. 2. Discuss the implications of Requirement 1 for the financial and learning and growth perspectives.
  3. 3. Using the first if-then statement, explain the concept of double-loop feedback.

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Chapter 13 Solutions

Cornerstones of Cost Management (Cornerstones Series)
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