Average card member spending | Number of Internet features
Cards in force | Number of merchant signings
Earnings growth | Number of new card launches
Hours of credit consultant training | Return on equity
Investment in information technology | Revenue growth
Number of card choices
For each measure, identify whether the measure best fits the innovation, customer, internal process, or financial dimension of the balanced scorecard.
Answer:
Although there is some judgment in classifying each of these measures, the following represents the author’s assessment with explanations:
Average card member spending | Customer—demonstrates the usefulness of the card to the customer.
Cards in force | Customer—if customers did not value the
card, they would not have one.
Earnings growth | Financial
Hours of credit consultant training | Internal process—advisors will do their job better if they are trained.
Investment in information technology | Internal process (or innovation)—shows the investment in improving processes.
Number of Internet features | Internal process (or innovation)—shows new process investments in a new channel.
Number of merchant signings | Customer—the larger the number of
merchants that honor the card, the more valuable it is to cardholders.
Number of card choices | Customer—more choices are more valuable
to customers.
Number of new card launches | Innovation—measures the new cards (affinity, regional, etc.) being developed and marketed.
Return on equity | Financial
Revenue growth | Financial