Practice question · Multiple choice
In the balanced scorecard, learning-and-growth metrics are called leading indicators. Why manage by a number that is not the result you care about?
Hints
- Ask what you can still do about last quarter’s revenue.
- A control system needs something it can still influence.
Show the answer
A. Because financial results report a period already closed
Why
Lagging measures verify; leading measures steer. Managing only on financials is steering by the rear-view mirror, which is the criticism the scorecard was built to answer.
Practise Control Systems
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