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Indicate whether the statement is true or false.
1. Leading indicators of a balanced scorecard represent long-term results.
a.
True
b.
False
2. A useful approach to ensuring data reliability is for internal cross-functional teams or external auditors to conduct
periodic audits of the processes used to collect the data.
a.
True
b.
False
3. Data mining is the most effective method of establishing cause-and-effect relationships among variables.
a.
True
b.
False
4. An organization must align its performance measurement system to its vision and strategy and select meaningful
measurements.
a.
True
b.
False
5. A knowledge-enabled culture is created when an organization employs a system of aligned human resource policies,
tactics, processes, and practices that ensure knowledge is created, captured, used, and reused to achieve superior
organizational results as a sustainable advantage.
a.
True
b.
False
6. Setting targets for each performance measure provides the basis for strategy deployment.
a.
True
b.
False
7. Performance reviews in an organization are usually conducted on a daily or weekly basis for long-term control
decisions, and periodically throughout the year for short-term decisions and improvement.
a.
True
b.
False
8. A balanced scorecard greatly helps in identifying the real drivers of customer satisfaction.
a.
True
b.
False
9. Compared to money, labor, and capital equipment, knowledge is always the easiest to manage.
a.
True
b.
False
10. Oracle is one of the most prominent vendors for enterprise resource planning (ERP) software.
a.
True
b.
False
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11. Leading organizations continually improve their performance measurement systems, staying abreast of new
techniques.
a.
True
b.
False
12. The American Productivity and Quality Center (APQC) noted that executives have long felt frustrated by their
inability to identify or transfer outstanding practices from one location or function to another.
a.
True
b.
False
13. Data accessibility empowers employees and encourages their participation in quality improvement efforts.
a.
True
b.
False
14. Financial measures of performance measurement in the Baldrige Criteria are generally tracked by senior leadership to
gauge overall organizational performance and are often used to determine incentive compensation for senior executives.
a.
True
b.
False
15. Physical and financial assets have become more important than knowledge assets in most organizations.
a.
True
b.
False
16. A good balanced scorecard contains only leading measures and indicators.
a.
True
b.
False
17. The quality of information can be improved by capturing data only once, and as close to the origin of the data as
possible.
a.
True
b.
False
18. Measurement reliability in manufacturing demands careful attention to metrology, the science of measurement.
a.
True
b.
False
19. An emphasis on machine utilization in an organization encourages having fewer, but larger, general-purpose
machines, which results in increased inventory and throughput time.
a.
True
b.
False
20. Interlinking is the term that describes the quantitative modeling of cause-and-effect relationships between performance
measures, such as the customer satisfaction and product quality or employee performance.
a.
True
b.
False
21. An effective knowledge management system should include a common framework for managing knowledge and some
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ways of validating and synthesizing new knowledge as it is acquired.
a.
True
b.
False
22. Confidentiality and security are critical in managing data, particularly with the increasing use of electronic data
transfer.
a.
True
b.
False
23. Workforce-focused outcomes used for performance measurement in the Baldrige Criteria show how well the
organization has created and maintained a productive, engaging, and caring work environment.
a.
True
b.
False
24. Organizations that share quality, customer satisfaction, and financial performance results with their employees and
customers often exhibit poor performance in comparison with organizations that do not share such information.
a.
True
b.
False
25. The transfer of knowledge within organizations and the identification and sharing of best practices often set high-
performing organizations apart from the rest.
a.
True
b.
False
26. The purpose of the balanced scorecard is “to translate strategy into measures that uniquely communicate your vision to
the organization.”
a.
True
b.
False
Indicate the answer choice that best completes the statement or answers the question.
27. _____ systems allow organizations to share databases in a networking environment and store and process key data in a
unique database and distribute it to a large group of users.
a.
Juran’s quality trilogy
b.
Quincunx experimental
c.
Balanced scorecard
d.
Enterprise resource planning
28. Which of the following perspectives of the balanced scorecard includes service levels, satisfaction ratings, and repeat
business?
a.
Internal
b.
Financial
c.
Customer
d.
Innovation and learning
29. Which of the following perspectives of the balanced scorecard focuses on market share?
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a.
Internal
b.
Customer
c.
Innovation and learning
d.
Learning
30. _____ systems are software packages that integrate organizational information systems and provide an infrastructure
for managing information across the organization.
a.
Enterprise resource planning
b.
Balanced scorecard
c.
Juran’s quality trilogy
d.
Quincunx experimental
31. Which of the following organizations is one of the most prominent vendors of ERP software?
a.
STMicroelectronics
b.
Convergys
c.
Oracle
d.
Analog Devices
32. _____ knowledge includes information stored in documents or other forms of media such as databases, policies and
procedures, and technical drawings.
a.
Tacit
b.
Allusive
c.
Explicit
d.
Indirect
33. Which of the following statements regarding the practical guidelines suggested by Mark Graham Brown for designing
a performance measurement system is true?
a.
The system should concentrate on measuring many trivial variables.
b.
The system should avoid changing and adjusting measures even if the environment and strategy changes.
c.
Measures should be based around the needs of customers, shareholders, and other
key stakeholders.
d.
Measures should start at the bottom and flow up to all levels of top management in the organization.
34. Data _____ is the process of searching large databases to find hidden patterns in data.
a.
mining
b.
interlinking
c.
planning
d.
benchmarking
35. The process in which locations, divisions, and functions in an organizational structure focus on maximizing their own
accomplishments and rewards was called _____ by Deming.
a.
suboptimization
b.
return on quality
c.
interlinking
d.
lean production
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36. Which of the following perspectives of the balanced scorecard includes profitability, revenue growth, return on
investment, economic value added (EVA), and shareholder value?
a.
Internal
b.
Innovation and learning
c.
Customer
d.
Financial
37. _____ is the term that describes the quantitative modeling of cause-and-effect relationships between performance
measures, such as the customer satisfaction and product quality or employee performance.
a.
Programming
b.
Mining
c.
Interlinking
d.
Enterprise resource planning
38. In the context of managing information resources, the quality of information can be improved by
a.
avoiding electronic data capture.
b.
placing accountability on the creators of data and information.
c.
using multiple databases whenever feasible.
d.
using as many intermediaries as possible to handle data.
39. Which of the following perspectives of the balanced scorecard measures the ultimate results that the business provides
to its shareholders?
a.
Customer
b.
Internal
c.
Innovation and learning
d.
Financial
40. _____ involves the discovery, learning, creation, and reuse of knowledge that eventually becomes intellectual
capital—knowledge that can be converted into value and profits.
a.
Rapid knowledge costing
b.
Knowledge internationalization
c.
Rapid knowledge transfer
d.
Knowledge interlinking
41. Which of the following first developed the concept of a balanced scorecard?
a.
Art Schneiderman
b.
W. Edwards Deming
c.
Joseph Juran
d.
Kaoru Ishikawa
42. Which of the following perspectives of the balanced scorecard includes such measures as quality levels, productivity,
cycle time, and cost?
a.
Innovation and learning
b.
Customer
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c.
Internal
d.
Financial
43. _____ knowledge is information that is formed around intangible factors resulting from an organization’s or
individual’s experience and is content-specific.
a.
Lucid
b.
Tacit
c.
Definitive
d.
Explicit
44. _____ of product and service performance and customer indicators is a critical management tool for defining and
focusing on key quality and customer requirements, identifying product and service differentiators in the marketplace, and
determining cause–effect relationships between product and service attributes and measures of customer satisfaction and
loyalty, as well as positive referrals.
a.
Regression analysis
b.
Benchmarking
c.
Correlation analysis
d.
Quincunx experimentation
45. Which of the following perspectives of the balanced scorecard directs attention to the basis of a future success —the
organization’s people and infrastructure?
a.
Internal
b.
Customer
c.
Financial
d.
Innovation and learning
46. _____ data refer to industry averages, competitor performance, world-class benchmarks, or performance measures of
other organizations with similar product offerings.
a.
Cross-functional
b.
Comparative
c.
Reviewed
d.
Interlinked
47. With respect to the Baldrige Criteria performance measures, _____ performance indicators include measures of
business growth and percentage of new product sales.
a.
product and process
b.
leadership and governance
c.
financial and market
d.
workforce-focused
48. _____ knowledge is easily captured, stored, and disseminated using computer technology.
a.
Explicit
b.
Indirect
c.
Tacit
d.
Allusive
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49. Pal’s Sudden Service uses an automated data collection, integration, and analysis system called _____ to generate
store-level and companywide reports on sales, customer count, and product mix.
a.
SysDine
b.
Knowledge Network
c.
Quincunx
d.
eTracker
50. The ability to identify and transfer best practices within the organization is sometimes called
a.
enterprise resource planning.
b.
interlinking.
c.
internal benchmarking.
d.
data mining.
51. Which of the following analytical approaches or technologies is most likely to be used for data mining?
a.
Histogram
b.
Pareto diagram
c.
Quincunx experiment
d.
Fuzzy logic
52. Which of the following is most likely to be used to obtain comparative data?
a.
Interlinking approach
b.
Cluster analysis
c.
Benchmarking approach
d.
Cause-and-effect approach
53. _____ refers to an examination of facts and data to provide a basis for effective decisions.
a.
Analysis
b.
Data warehousing
c.
Interlinking
d.
Clustering
54. Which of the following measures of the Baldrige Criteria of performance measurement includes internal quality
measurements, defect levels, service errors, and response times?
a.
Leadership and governance measures
b.
Customer-focused measures
c.
Product and process measures
d.
Financial and market measures
55. _____ assets refer to the accumulated intellectual resources that an organization possesses, including information,
ideas, learning, understanding, memory, insights, cognitive and technical skills, and capabilities.
a.
Personal
b.
Knowledge
c.
Strategic
d.
Deployment
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56. Which of the following perspectives of the balanced scorecard includes intellectual assets, employee satisfaction,
market innovation, and skills development?
a.
Financial
b.
Internal
c.
Innovation and learning
d.
Customer
57. Which of the following measures of the Baldrige Criteria of performance measurement includes revenue, return on
equity, return on investment, and operating profit?
a.
Workforce-focused measures
b.
Leadership and governance measures
c.
Product and process measures
d.
Financial and market measures
58. To achieve a high level of performance excellence, an organization requires a much broader set of performance
measures that are aligned to an organization’s strategy; this became known as the
a.
quality trilogy.
b.
balanced scorecard.
c.
quincunx.
d.
Taguchi loss function.
59. The quality of information can be improved by all of the following methods EXCEPT
a.
capturing data twice.
b.
capturing data as close to the origin of the data as possible.
c.
capturing data electronically where possible.
d.
placing accountability on the creators of data and information.
60. _____ involves the process of identifying, capturing, organizing, and using knowledge assets to create and sustain
competitive advantage.
a.
Knowledge mining
b.
Suboptimization
c.
Knowledge management
d.
Lean production
61. What is the result of the improvements in the workplace and the aggressive implementation of automation in the U.S.
Postal Service?
62. How are the elements in the balanced scorecard linked to support the strategic objectives of the U.S. Postal Service?
63. Discuss the results of the rigorous performance review process developed by the Postal Service for achieving the
targets set.
64. Discuss the 140 networks of excellence used by ConocoPhillips.
65. On what is knowledge sharing at ConocoPhillips based?
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66. Describe knowledge sharing at ConocoPhillips.
67. What were the main motivations behind ConocoPhillips’ introduction of knowledge sharing in 2004
68. Discuss the focus of the Voice of the Employee, the Voice of the Business, and the Voice of the Customer.
69. What served as the beginning of the balanced scorecard approach in the Postal Service?
70. List the four perspectives of Kaplan and Norton’s balanced scorecard.
71. What led to the creation of CustomerPerfect! in the U.S. Postal Service?
72. What makes it complex for the U.S. Postal Service (USPS) to balance the interests of its stakeholders?
73. List three reasons why managers review performance results in an organization.
74. What must be included in an effective knowledge management system?
75. List the purposes of a performance measurement system.
76. Describe the significance of the leading and lagging measures in the context of a balanced scorecard.
77. List the reasons why organizations need good performance measures.
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52. c
53. a
54. c
55. b
56. c
57. d
58. b
59. a
60. c
61. The improvements in the workplace, along with aggressive implementation of automation and other management
investments, have led to a remarkable growth in postal productivity that has outpaced the growth of productivity in the
U.S. economy. The result is that the Postal Service is delivering more mail to more places, with fewer employees. Postal
delivery service also has improved significantly. First-class mail performance has improved to over 95 percent of
overnight mail being delivered on time, with improvements in other categories of first-class mail as well.
62. Each element works to support the strategic objectives in a linked process. Learning and Growth (“Voice of the
Employee” in postal terms) supports improved Internal Processes (“Voice of the Business”), which supports Customer
Satisfaction (“Voice of the Customer”). Customer satisfaction leads to the desired financial outcome, which in the case of
the Postal Service is sufficient revenue to support the universal delivery service mission.
63. The Postal Service has improved its performance on those measures assessing a safe and secure environment. USPS
has been recognized as one of the best places for minorities to work. The Postal Service’s implementation of the
REDRESS (Resolve Employment Disputes Reach Equitable Solutions Swiftly) program has received national
recognition. The USPS Occupational Safety and Health Administration OSHA Illness and Injury rate improved to 6.3 in
2004 from 8.7 in 2000. The results of the annual employee satisfaction survey, expressed as an index for six key questions
(where a larger index indicates improvement), have advanced from 57.5 in 2000 to 62.1 in 2004.
64. The Knowledge Management (KM) approach used by ConocoPhillips centers on 140 networks of excellence (i.e.,
virtual communities of practice) aligned with business functions. Each network has a Web-based portal that includes the
following:
1. A discussion board where members can post technical questions and answers
2. A knowledge library that houses content and reference materials
3. Expertise location tools for members seeking people with specific knowledge
65. Knowledge sharing at ConocoPhillips is based on the FAST (Find, Ask, Share, Trust) model:
1. FIND—the ability to locate trusted, validated content
2. ASK—peer Q&A and problem solving through discussion forums
3. SHARE—expertise location
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