The balanced scorecard is a performance measurement system that recognizes both financial and nonfinancial measures when evaluating a company’s performance. The balanced scorecard consists of four quadrants: learning and growth, internal business process, customer, and financial.

a. Indicate in which quadrant of the balanced scorecard each of the following performance measures would appear.

i. Cycle processing time

ii. New patents pending

iii. Employee skill level

iv. Return on investment

v. Scrap and spoilage

vi. Secret shopper ratings

vii. Customer retention metrics

viii. Budgets and performance reports

ix. Employee satisfaction ratings

x. Rework cost

xi. Number of new customers

xii. Budget and variances report

b. Which of these metrics would be nonfinancial (not reported in dollar terms) but still useful and understandable by management?

c. Which of these metrics would be considered lead indicators?