With the total performance indicators in place at Sears, it can evaluate if a single store improves its employee attitude by 5 percent and therefore predict with confidence that if the revenue growth in the district as a whole is 5 percent, the revenue growth in this particular store would be 5.5 percent. This is an example of the _______ perspective of the balanced scorecard.
A)customer
B)internal business
C)financial
D)innovation and learning

Question

Quizplus · Accepted Answer

Sears, the retailer, found a strong causal relationship between employee attitudes, customer attitudes, and financial outcomes. Through an ongoing study, Sears developed what it calls its total performance indicators (TPI) which is a set of indicators for assessing its performance with customers, employees, and investors. The Sears quantitative model has shown that a 5 percent improvement in employee attitudes leads to a 1.3 percent improvement in customer satisfaction, which in turn drives a 0.5 percent improvement in revenue. Thus, if a single store improved its employee attitude by 5 percent, Sears could predict with confidence that if the revenue growth in the district as a whole were 5 percent, the revenue growth in this particular store would be 5.5 percent.

With the Total Performance Indicators in Place at Sears, It