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Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen
Edition 2ISBN: 978-1111824402Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen
Edition 2ISBN: 978-1111824402 Exercise 29
Balanced Scorecard, Lead and Lag Variables, Double-Loop Feedback
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.
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.
Explanation
Verified
Verified
1. Lead indicators activate the variable...
Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen
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