1) Database and information systems are physical assets which create distinctive value for companies.
2) The roles of performance measurement systems in organizations include all of the following EXCEPT:
A) motivate employees to help the organization achieve its strategic objectives.
B) help managers with resource allocation.
C) create value from intangible assets as well as their physical and financial assets.
D) communicate the company's strategic objectives.
3) Many intangible assets:
A) do not appear on the balance sheet since it is difficult to place a reliable financial value on them.
B) should be evaluated with ROI and other performance measures.
C) can be measured and managed with current financial control systems.
D) are unimportant because they have no physical substance.
4) Intangible assets that are currently reported on the balance sheet include:
A) loyal and profitable customer relationships.
B) organizational culture.
C) employee skills and motivation.
D) the cost of a patent giving exclusive rights to a process.
5) The saying “what gets measured gets done” refers to measuring performance:
A) so that appropriate disciplinary actions can be taken.
B) to ensure that employees perform equally in all dimensions of their jobs.
C) so that essential tasks get accomplished.
D) to ensure that the ethical code of conduct is also being enforced.
6) Give at least two examples of intangible assets. Are intangible assets critical for success? Explain.
1) The financial perspective addresses which processes must we excel at to meet our customer and shareholder expectations.
2) The Balance Scorecard measures organizational performance across five different but linked perspectives.
3) The learning and growth perspective addresses what employee capabilities, information systems, and organizational capabilities we need to continually improve.
4) The customer perspective of the Balanced Scorecard focuses on excellence in processes which satisfy customers.