ITPEC FE Subject A April 2026 Question 51
Which of the following is an example of the strategic target and key performance indicator from the viewpoint of internal business processes in a Balanced Scorecard (BSC)?
Explanation
Improving manufacturing productivity, measured by a reduction in manufacturing days — a target and indicator about how well an internal process runs.
The Balanced Scorecard views strategy from four perspectives:
- •Financial — results for shareholders: sales, profit, growth
- •Customer — how customers see the company: satisfaction, retention, complaints
- •Internal business process — the processes the company must excel at: lead time, productivity, defect rate
- •Learning and growth — people and capabilities: training, skills, knowledge
Manufacturing lead time measures an internal process, so it belongs to the third perspective.
Answer (b)
Why not others:
- •(a) — a relationship with customers measured by complaints is the customer perspective
- •(c) — development capability measured by training time is the learning and growth perspective
- •(d) — sustainable growth measured by the order backlog is the financial perspective
Key rule: Classify a BSC indicator by what it measures: money is financial, customer reaction is customer, the speed or quality of work inside the company is internal process, building people's capability is learning and growth.
Business Strategy Management · AI-written, may contain errors
This question comes from an official ITPEC past paper. ITPEC Practice is an independent study tool and is not affiliated with ITPEC. See the official FE past-paper collection or Report an issue.