1.

Based on the information provided in the table, it seems that NVT did not fully succeed in
implementing its plan for 2022. While they exceeded their targets in some areas, such as
upgrading hotel room systems to a 5-star standard room rate at 98%, they fell short in others,
such as achieving a customer retention rate of only 20%. Additionally, they missed their
targets in some critical areas like financial performance; income changes due to an increase in
market share from customers booking online and an increase in quality of resort services.

2. Overall, the measures in NVT's Balanced Scorecard are aligned with the company's
objectives and strategy. The financial perspective focuses on increasing revenue through
online bookings and improving the quality of resort services, which is crucial for NVT's
successThe customer perspective aims to improve satisfaction levels, while the internal
business process perspective emphasizes labor productivity and upgrading hotel room
systems. The learning and growth perspective focuses on employee development and skill-
building.

However, it's worth mentioning that some of the measures need further clarificationFor
example, what constitutes a high-quality resort service, and how would NVT measure it?
Also, the target for the proportion of employees trained in the quality management process
was not met, which may suggest the need for more effective training programs.

3. Depending on NVT's changing business needs, it may be necessary to add new measures
or modify existing ones in their Balanced Scorecard. For instance, NVT could consider
adding measures related to sustainability, such as reducing energy consumption or waste
production. Moreover, they could add measures that focus on customer feedback quality, like
measuring Net Promoter Scores (NPS) or Customer Effort Scores (CES), to get a better
understanding of customer satisfaction level. Additionally, they could include measures
related to employee engagement, like employee turnover rates or job satisfaction scores, to
help identify any issues and improve employee retentionBy continually reviewing and
updating their Balanced ScorecardNVT can ensure that it remains relevant to the changing
market landscape
Based on the information provided in the table, it seems that NVT did not fully succeed in
implementing its plan for 2022. While they exceeded their targets in some areas, such as
upgrading hotel room systems to a 5-star standard room rate at 98%, they fell short in others,
such as achieving a customer retention rate of only 20%. Additionally, they missed their
targets in some critical areas like financial performance; income changes due to an increase in
market share from customers booking online and an increase in quality of resort services.

2. Overall, the measures in NVT's Balanced Scorecard are aligned with the company's
objectives and strategy. The financial perspective focuses on increasing revenue through
online bookings and improving the quality of resort services, which is crucial for NVT's
successThe customer perspective aims to improve satisfaction levels, while the internal
business process perspective emphasizes labor productivity and upgrading hotel room
systems. The learning and growth perspective focuses on employee development and skill-
building.

However, it's worth mentioning that some of the measures need further clarificationFor
example, what constitutes a high-quality resort service, and how would NVT measure it?
Also, the target for the proportion of employees trained in the quality management process
was not met, which may suggest the need for more effective training programs.

3. Depending on NVT's changing business needs, it may be necessary to add new measures
or modify existing ones in their Balanced Scorecard. For instance, NVT could consider
adding measures related to sustainability, such as reducing energy consumption or waste
production. Moreover, they could add measures that focus on customer feedback quality, like
measuring Net Promoter Scores (NPS) or Customer Effort Scores (CES), to get a better
understanding of customer satisfaction level. Additionally, they could include measures
related to employee engagement, like employee turnover rates or job satisfaction scores, to
help identify any issues and improve employee retentionBy continually reviewing and
updating their Balanced ScorecardNVT can ensure that it remains relevant to the changing
market landscape

Đề 2022
Q1: Determine whether the following statement are T or F, explain
1.1. Change control focus on assessing the behavior of individual and organizations
False. Change control is a process used to manage changes to systems or procedures, and
does not typically involve assessing the behavior of individuals or organizations. However,
change control processes may include evaluating the impact of changes on different aspects
of an organization, such as its people, processes, and technology
1.2 Auditing of FS is a typical example of feedforward control
False → Auditing of FS is an example of feedback control

Q2: Distinguish management control and task control

 Q3: Thaco Ltd produces product B. In 3/2022, the budget and performance of Thaco Ltd are
as follows

Budget (S) Actual performance (A)

Sales:

Selling price VND 3,000,000 / unit VND 2,800,000 / unit

Sales volume 1000 units 800 units

Fixed overheads VND 300 million VND 320 million

Variable costs

Raw materials costs 1,000 units *(10kg/unit)* 1,000 units *(11kg/unit)*

(VND 100,000 / kg) (VND 105,000 / kg)

Direct labor costs 1,000 units *(5 hours /unit)* 1,000 units *(6 hours /unit)*
(VND 50,000 / hours) (VND 55,000 / hours)

Variable overheads VND 500,000 million VND 440,000 million

Required:
i) Calculate the profit variance for Thaco Ltd. in March 2022
Sales
Ps = 3 Pa = 2,8 (million đ)
Vs = 1000 Va = 800
Dental P = (Pa - Ps) x Va = (2,8 - 3) x 800 = (160) A
Dental V = (Va - Vs) x Ps = (800 - 1000) x 3 = (600) A
(760) A
Do giá bán thấp hơn và sản lượng thấp hơn đã làm cho lợi nhuận giảm 760
10% xấp xỉ 300
Thaco specifies 10% of budget is a threshold for variance (approximately VND 300
million) → The main cause of profit variance for Thaco Ltd. is the sale volume.Adverse
variances in sales volume can be caused by several factors, including:
Changes in customer demand - If there is a decrease in customer demand for a product, sales
volumes may decline.

Competitive pressures - Increased competition in the marketplace, such as the introduction of new
products or the entry of new competitors, may lead to a decrease in sales volumes.

Pricing changes - If prices are increased, this may lead to a reduction in sales volumes due to
decreased demand.

Changes in market conditions - Economic slowdowns, changes in consumer preferences, or shifts

in demographic trends can all impact sales volumes.
 Distribution problems - Difficulties with distribution channels, such as supply chain disruptions or
logistical challenges, can lead to lower sales volumes.

2. Fixed overhead cost

300-320=(20) → F
3. Material
Ps = 0.1 Pa = 0.105
q (lượng nguyên vật liệu cần tiêu hao để sản xuất sản phẩm) (amount of raw materials needed
to produce the product)

ii) Break down the profit variance calculated into different related variances
iii) If Thaco specifies 10% of budget is a threshold for variance, specify which variances
should be analyzed? Provide some possible reasons for such variances
Q4:
M is a large-scale auditing firm. M’s clients are usually foreign-invested enterprises operating
in Vietnam and companies listed on the stock market. Indicate which measures are
appropriate for the learning and growth and internal business process perspectives of M’s
Balanced scorecards.

Sure! Here are some additional details about the measures that would be appropriate for M's Learning
and Growth and Internal Business Process perspectives:

Learning and Growth Perspective:

1. Provide ongoing training and development opportunities: Continuous learning should be a key
priority for M's employees, given the constantly evolving nature of auditing and accounting practices
and regulations. M should provide internal training programs or partner with outside training
providers to ensure its employees possess the latest knowledge and skills. This could include
workshops, courses, certifications or other development programs.
2. Implement a knowledge-sharing culture: Encouraging employees to freely share their knowledge
and experience can help break down barriers between different departments and teams within M,
improving collaboration, communication, and innovation. Peer mentoring and shadowing programs,
cross-departmental projects, or team-building activities can create a cohesive work environment
where employees feel empowered to share their insights.

Internal Business Process Perspective:

1. Develop standardized and efficient audit processes: To enhance audit efficiency, reduce the
likelihood of errors and increase transparency, M should establish and regularly review standard
operating procedures (SOPs) for all aspects of the auditing process. These SOPs can help auditors
follow best practices during auditing engagements, from planning and risk assessment through to
conclusions and recommendations. M should also ensure compliance with industry standards such as
IFRS, ISA, etc.
2. Regularly review and update internal controls, procedures, and policies: M should maintain robust
governance frameworks which articulate well-defined roles, responsibilities and control mechanisms
to meet regulatory requirements. The control frameworks should be aligned with internationally-
recognized and generally accepted professional auditing standards, including ISO 9001 to achieve
better results.
3. Leverage technology to automate routine tasks and enhance data analysis capabilities: Auditing
firms have started leveraging advanced analytics and technology tools to perform complex analytical
procedures and gain deeper insights into client companies' financial data. M should invest in
technologies such as automation bots for repetitive auditing processes, software for data analytics and
extraction, cloud-based management systems. These systems can be used to produce more accurate
analysis of client financials, provide data-backed recommendations / insights and can help improve
audit quality.
4.
Causes of sales variances
Variance Favourable
Sale price There are several reasons why sales price variances can be favorable,
including:
1. Increased demand: If there is a sudden increase in demand for a
product or service, a company may adjust its prices to
capitalize on this increased demand. This can lead to higher
sales and revenue, resulting in a favorable sales price variance.
2. Cost savings: If a company finds ways to reduce production or
operating costs, it may be able to lower the price of its products
or services without sacrificing profit margins. This can result in
increased sales and revenue, leading to a favorable sales price
variance.
3. Market conditions: Changes in market conditions, such as a
competitor going out of business or a new technology
disrupting an industry, can create opportunities for companies
to gain market share and increase sales. This can result in a
favorable sales price variance.
4. Pricing strategy: A well-designed pricing strategy that takes
into account factors such as customer preferences, product
differentiation, and competitive positioning can generate higher
sales and revenue, resulting in a favorable sales price variance.
Sale There could be several reasons for favourable sales volume variances,
volume such as:
1. Effective Marketing: If a company has implemented successful
marketing strategies that have resulted in increased brand
Adverse
1 Competitive pressures - Increased competition in the
marketplace may lead to a decrease in prices to remain
competitive.
2 Changes in customer demand - If there is a decrease in
demand for a product, prices may need to be lowered to
stimulate sales.
3 Product quality or features - Products with lower quality or
fewer features may need to be priced lower than their
competitors to remain competitive.
4 Distribution problems - Issues with distribution channels,
such as overstocked inventory or limited availability, may
lead to lower prices to move products.
5 Changes in market conditions - Economic slowdowns or
shifts in consumer preferences can impact pricing strategies.
1 Changes in customer demand - If there is a decrease in
customer demand for a product, sales volumes may decline.
2 Competitive pressures - Increased competition in the
marketplace, such as the introduction of new products or the
 recognition, customer engagement, and loyalty, it could lead to
higher sales volume.
2. Improved Product Quality: When a company improves the
quality of its products, it can attract more customers, retain
existing ones and increase sales volume.
3. Higher Demand: If there is an increase in demand for a product
or service, it would lead to an increase in sales volume.
4. Successful Promotions: Promotional activities such as
discounts, incentives, bundling, or special offerings may drive
customers to make more purchases, boosting the sales volume.
Overall, favorable sales volume variances indicate that the company
has performed better than expected, capturing a larger share of the
market, achieving higher revenues, and potentially raising
profitability.
Causes of material variances
Variance Favourable
Material Favorable material price variances occur when the actual cost of
price materials used in production is lower than the standard cost or
expected cost. There are several reasons why favorable material
price variances may occur:
1. Negotiated discounts: The company may have negotiated
favorable discounts with suppliers, allowing them to purchase
entry of new competitors, may lead to a decrease in sales
volumes.
3 Pricing changes - If prices are increased, this may lead to a
reduction in sales volumes due to decreased demand.
4 Changes in market conditions - Economic slowdowns,
changes in consumer preferences, or shifts in demographic
trends can all impact sales volumes.
5 Distribution problems - Difficulties with distribution
channels, such as supply chain disruptions or logistical
challenges, can lead to lower sales volumes.
Adverse
Adverse material price variances occur when the actual cost of
materials used in production is higher than the standard cost or
expected cost. There are several reasons why adverse material
price variances may occur:
1. Increased supplier costs: Suppliers may have increased
their prices for the materials, either due to inflation,
 materials at a lower price than the standard cost.
2. Bulk purchasing: Buying materials in large quantities can
often result in lower unit costs. If the company purchases
materials in bulk, they may benefit from lower prices per
unit.
3. Efficient supplier selection: The company may have selected
suppliers who offer competitive pricing or have better pricing
options than other suppliers in the market.
4. Improved supplier relationships: Strong relationships with
suppliers can lead to preferential pricing or special deals. If
the company has a good relationship with its suppliers, they
may offer lower prices as a result.
5. Market fluctuations: Sometimes, market conditions may
cause the prices of certain materials to decrease temporarily.
If the company takes advantage of these lower market prices,
it can result in favorable material price variances.
6. Cost-saving initiatives: The company may have implemented
cost-saving measures within its procurement processes, such
as exploring alternative suppliers, sourcing cheaper yet
comparable materials, or optimizing inventory management.
These initiatives can lead to lower material costs and
favorable variances.
7. Value engineering: Value engineering involves analyzing the
specifications of materials used in production and finding
cost-effective alternatives without compromising quality. If
the company identifies and implements value engineering
opportunities, it can achieve cost savings and favorable
material price variances.
It's important to note that these reasons are general examples, and the
changes in market conditions, or their own cost
structure. These price increases can result in higher
material costs for the company.
2. Quality issues: Poor quality materials may lead to higher
rejection rates or higher scrap rates, which can increase
the overall cost of materials. If the company has to
rework or discard materials due to quality issues, it can
contribute to adverse material price variances.
3. Changes in material specifications: If the company needs
to use different materials than the ones originally
planned for, it may result in higher costs. This can
happen if there are changes in product design, customer
requirements, or regulatory standards that necessitate the
use of more expensive materials.
4. Inefficient purchasing practices: Inefficient procurement
processes, such as not negotiating favorable contracts or
not taking advantage of volume discounts, can lead to
higher material costs. If the company does not
effectively manage its purchasing activities, it may miss
out on cost-saving opportunities.
5. Market fluctuations: Market conditions can also have
adverse effects on material prices. Prices of certain
materials may increase due to factors like supply
shortages, increased demand, or geopolitical events. If
the company is unable to mitigate these price increases,
it can result in adverse material price variances.
6. Transportation and logistics costs: If the costs associated
with transporting and delivering materials to the
company's production facility increase, it can contribute
to higher material costs. Factors like fuel prices,

specific factors influencing material price variances may vary
depending on the industry, company, and its specific circumstances.
Material Favorable material usage variances occur when the actual quantity of Adverse material usage variances occur when the actual
Usage
materials used in production is lower than the standard or expected expected quantity. There are several reasons why adverse
quantity. There are several reasons why favorable material usage
variances may occur:
1. Efficient production processes: Streamlined and efficient
production processes can reduce waste and optimize material
usage. If the company has implemented effective procedures
and controls to minimize material waste, it can result in
favorable material usage variances.
2. Skilled labor: Well-trained and experienced employees can
handle materials more effectively, reducing the likelihood of
errors or waste. If the workforce is knowledgeable and skilled
transportation fees, or customs duties can impact
transportation costs and lead to adverse variances.
7. Currency exchange rates: If the company imports
materials from foreign suppliers, fluctuations in currency
exchange rates can affect material costs. If the local
currency weakens against the supplier's currency, it can
result in higher material costs for the company.
It's important to analyze adverse material price variances to
identify the underlying causes and take appropriate actions to
address them, such as exploring alternative suppliers,
renegotiating contracts, improving quality control processes, or
seeking cost-saving opportunities.
quantity of materials used in production exceeds the standard or
material usage variances may occur:
1. Inefficient production processes: Inefficient or poorly
optimized production processes can lead to excessive
material waste or overconsumption. Factors such as
ineffective equipment, lack of standardized procedures,
or inadequate employee training can contribute to
adverse material usage variances.
2. Inaccurate measurements or calculations: Errors in
measuring or calculating material quantities during
production can result in adverse variances. Inaccurate
measurements, improper weighing, or miscalculations in
material requirements can lead to higher material usage
 in handling materials, it can contribute to favorable material
usage variances.
3. Improved inventory management: Effective inventory
management practices, such as just-in-time (JIT) inventory
systems or accurate demand forecasting, can help minimize
excess inventory and reduce the chances of material spoilage
or obsolescence. By optimizing inventory levels, the
company can achieve favorable material usage variances.
4. Enhanced production planning: Efficient production planning
can lead to better material allocation and utilization. If the
company plans its production processes carefully,
considering factors such as batch sizes, production
sequencing, and material requirements, it can result in
favorable material usage variances.
5. Product design and engineering: Thoughtful product design
and engineering can optimize material usage. If the company
designs products with efficient material layouts, minimizing
scrap or excess material, it can contribute to favorable
variances in material usage.
6. Quality control measures: Effective quality control processes
can help identify and rectify any issues related to material
usage. By minimizing defects and rework, the company can
reduce the amount of materials wasted, leading to favorable
material usage variances.
7. Continuous improvement initiatives: Companies that actively
pursue continuous improvement initiatives, such as Lean
manufacturing or Six Sigma, often focus on eliminating
waste and improving efficiency. These efforts can result in
favorable variances in material usage.
It's important to note that while favorable material usage variances
than planned.
3. Poor inventory control: Ineffective inventory
management practices can contribute to adverse material
usage variances. Issues such as inadequate stock
monitoring, insufficient controls on material access, or
lack of inventory reconciliation can result in higher
material consumption than anticipated.
4. Substandard quality control: If there are quality control
issues during production, it can lead to higher material
waste or rework. Defects, rejects, or the need for
additional material to rectify quality issues can
contribute to adverse material usage variances.
5. Variations in production specifications: Deviations from
the standard production specifications or changes in
product design can lead to adverse material usage
variances. If the actual production process requires more
materials than initially planned, it can result in higher
material consumption.
6. Ineffective employee training: Insufficient training or
lack of awareness among employees regarding proper
material handling and usage can contribute to adverse
variances. Inadequate understanding of best practices,
incorrect material handling techniques, or insufficient
supervision can lead to higher material usage.
7. External factors: Some adverse material usage variances
may be influenced by external factors beyond the
company's control. These can include unexpected
changes in customer demand, variations in raw material
quality, or unforeseen disruptions in the supply chain.
It's important to investigate and address adverse material usage
 are generally desirable, it's crucial to ensure that the reduction in
material usage does not compromise product quality or customer
satisfaction. Striking a balance between minimizing waste and
meeting production requirements is essential for sustainable and
efficient operations.
Causes of labor variances
Variance Favourable
Labor rate Favorable labor rate variances occur when the actual labor costs
incurred in production are lower than the standard or expected labor
costs. There are several reasons why favorable labor rate variances
may occur:
1. Wage reductions or negotiations: If the company
successfully negotiates lower labor rates with its employees
or labor unions, it can result in favorable labor rate
variances. This could be due to temporary wage reductions,
cost-saving agreements, or favorable labor contracts.
2. Increased efficiency or productivity: Improved efficiency
and productivity can lead to favorable labor rate variances.
If employees can produce more output within the same
amount of time, it reduces labor costs per unit produced,
resulting in favorable variances.
variances to identify the root causes and implement corrective
actions. Improving production processes, enhancing quality
control measures, providing training to employees, and
implementing effective inventory management practices can
help reduce material waste and minimize adverse variances.
Adverse
Adverse labor rate variances occur when the actual labor costs
incurred in production are higher than the standard or expected
labor costs. There are several reasons why adverse labor rate
variances may occur:
1. Wage increases or labor negotiations: If the company
experiences wage increases due to factors such as labor
contracts, inflation, or changes in minimum wage laws,
it can contribute to adverse labor rate variances. These
increases in labor rates result in higher labor costs per
hour.
2. Overtime or premium labor costs: If the company relies
heavily on overtime or hires temporary or specialized
labor at a higher cost, it can lead to adverse labor rate
variances. Overtime wages, shift differentials, or
 3. Staffing adjustments: Adjustments in staffing levels or
scheduling can impact labor costs. If the company
effectively manages its workforce, ensuring the right
number of employees are available to meet production
demands, it can contribute to favorable labor rate variances.
4. Overtime reduction: Overtime wages are typically higher
than regular wages. If the company reduces the need for
overtime by optimizing production schedules, improving
planning, or enhancing workforce management, it can result
in favorable labor rate variances.
5. Automation or technology implementation: The adoption of
automation or technology in production processes can lead
to increased efficiency and reduced labor costs. When
technology replaces or assists labor-intensive tasks, it can
result in favorable labor rate variances.
6. Skill mix optimization: Optimizing the mix of skills and
responsibilities within the workforce can impact labor costs.
If the company strategically assigns tasks to employees
based on their skill levels and pay grades, it can result in
favorable variances by reducing labor costs for specific
activities.
7. Cost-saving initiatives: Implementation of cost-saving
measures, such as lean manufacturing principles, process
improvements, or employee suggestion programs, can lead
to favorable labor rate variances. These initiatives focus on
reducing waste, improving efficiency, and lowering labor
costs.
It's important to note that while favorable labor rate variances can
contribute to cost savings, it's crucial to maintain a balance between
reducing costs and ensuring fair compensation for employees. It's
premiums paid for certain types of labor can increase
labor costs.
3. Inefficiencies or low productivity: Inefficient work
practices, low employee productivity, or inadequate
training can result in adverse labor rate variances. If
employees take longer than expected to complete tasks
or if there are frequent disruptions or delays, it can
increase labor costs.
4. Staffing issues: If there are staffing shortages or a
mismatch between labor demand and supply, it can
contribute to adverse labor rate variances. Hiring
temporary workers, using subcontractors, or paying
overtime to compensate for insufficient labor resources
can drive up labor costs.
5. Inaccurate labor cost estimates: Adverse labor rate
variances can occur if the initial estimates or standards
for labor costs were inaccurate or underestimated. This
can happen if there were incomplete or incorrect
assumptions made during the budgeting or planning
process.
6. Skill gaps or labor mix inefficiencies: If the workforce
lacks the necessary skills or if the mix of skills and
responsibilities is not optimized, it can lead to adverse
labor rate variances. Inefficient allocation of labor
resources or reliance on higher-paid workers for tasks
that could be performed by lower-cost employees can
increase labor costs.
7. Regulatory compliance costs: Adverse labor rate
variances can occur due to increased costs associated
with compliance with labor laws, safety regulations, or
other regulatory requirements. These additional costs,

also important to monitor the impact of favorable labor rate
variances on other aspects of the business, such as productivity,
employee morale, and overall operational effectiveness.
Labor Favorable labor efficiency variances occur when the actual labor
efficient hours used in production are lower than the standard or expected
labor hours. There are several reasons why favorable labor
efficiency variances may occur:
1. Increased employee productivity: If employees are able to
complete their tasks more efficiently and produce more
output within the same amount of time, it can result in
favorable labor efficiency variances. Factors such as skill
development, training programs, or improved work methods
can contribute to increased productivity.
2. Streamlined production processes: Efficient and well-
designed production processes can minimize wasted time,
reduce bottlenecks, and improve overall workflow. If the
company has optimized its production processes, it can
result in favorable labor efficiency variances by reducing
unnecessary delays and idle time.
3. Effective use of technology: The implementation of
technology, automation, or specialized equipment can
enhance labor efficiency. By automating repetitive tasks,
such as training, certifications, or workplace
modifications, can contribute to higher labor expenses.
It's important for companies to analyze adverse labor rate
variances to identify the underlying causes and take appropriate
actions. This can include addressing productivity issues,
optimizing staffing levels, improving training programs,
renegotiating labor contracts, or exploring automation or
process improvements to reduce labor costs.
Adverse labor efficiency variances occur when the actual labor
hours used in production exceed the standard or expected labor
hours. There are several reasons why adverse labor efficiency
variances may occur:
1. Inefficient work practices: Adverse labor efficiency
variances can result from inefficient work practices,
such as excessive downtime, poor coordination between
tasks, or unnecessary delays. Inadequate training, lack
of clear instructions, or ineffective supervision can
contribute to lower productivity and adverse labor
efficiency variances.
2. Low employee morale or motivation: When employees
are demotivated or disengaged, it can impact their
productivity. Factors such as poor working conditions,
inadequate recognition, or lack of opportunities for
growth and development can lead to adverse labor
efficiency variances.
3. Skill gaps or inadequate training: Insufficient employee
skills or knowledge can result in lower productivity and
 utilizing efficient machinery, or leveraging digital tools, the
company can streamline operations and achieve favorable
labor efficiency variances.
4. Improved workforce planning: Accurate forecasting and
planning of labor requirements can contribute to favorable
labor efficiency variances. If the company has a good
understanding of demand patterns, production schedules,
and resource allocation, it can optimize labor utilization and
minimize inefficiencies.
5. Skill development and training: Investing in employee skill
development and training programs can enhance labor
efficiency. By improving employee competencies,
knowledge, and expertise, they can perform tasks more
effectively, leading to favorable labor efficiency variances.
6. Incentive programs: Implementing incentive programs, such
as performance-based pay or recognition systems, can
motivate employees to work more efficiently. When
employees are incentivized to meet or exceed productivity
targets, it can result in favorable labor efficiency variances.
7. Continuous improvement initiatives: Companies that
actively pursue continuous improvement initiatives, such as
Lean manufacturing or Six Sigma, focus on eliminating
waste, optimizing processes, and enhancing efficiency.
These efforts can result in favorable labor efficiency
variances over time.
It's important to note that while favorable labor efficiency variances
are generally desirable, it's crucial to ensure that the increase in
productivity does not compromise quality or employee well-being.
Striking a balance between efficiency and maintaining a positive
work environment is essential for sustainable performance.
adverse labor efficiency variances. If employees lack the
necessary training or experience to perform their tasks
efficiently, it can lead to longer work hours and reduced
productivity.
4. Production bottlenecks or constraints: Adverse labor
efficiency variances can occur when there are
bottlenecks or constraints in the production process.
These bottlenecks can limit the flow of work and create
inefficiencies, leading to longer labor hours and reduced
productivity.
5. Equipment or machinery breakdowns: Equipment
failures or breakdowns can disrupt production and lead
to adverse labor efficiency variances. When equipment
is unavailable or not functioning optimally, it can result
in delays and increased labor hours to complete tasks.
6. Variations in production specifications or complexity:
Adverse labor efficiency variances can occur when the
actual production process is more complex or time-
consuming than initially planned. Changes in product
design, increased customization, or the introduction of
new materials or components can contribute to adverse
labor efficiency variances.
7. Inadequate workforce planning or resource allocation:
Poor workforce planning, including understaffing or
overstaffing, can result in adverse labor efficiency
variances. If the company does not accurately align
labor resources with production requirements, it can
lead to inefficiencies and increased labor hours.
It's important to identify and address the underlying causes of
adverse labor efficiency variances to improve productivity and
performance. This can involve addressing skill gaps through
training, improving work practices, providing motivation and
support to employees, optimizing production processes, and
ensuring effective resource allocation.
 Customers
Audit ● Customer satisfaction
rating: This measure
indicates how satisfied
the customers are with
the services provided by
the firm. Regular
feedback from
customers can be taken
to measure this. By
measuring customer
satisfaction, M can
identify areas where it
needs to improve its
services to meet
customer expectations.
● Customer retention rate:
This measure indicates
how many customers the
firm is retaining. It is a
reflection of how well
the firm is meeting their
needs and expectations.
A high customer
retention rate signifies
that the firm is providing
high-quality services and
meeting customer
Finance
● Revenue growth rate: This
measure indicates how much
the company has grown in
terms of revenue over a
specified period of time. It
can be calculated by
comparing the revenue
generated in the current
period to that of the previous
period. A high revenue
growth rate signifies that the
company is expanding its
business and increasing its
market share.
● Gross profit margin: This
measure is the difference
between the revenue and cost
of goods sold, expressed as a
percentage of revenue. It
helps to assess the
profitability of the company.
A higher gross profit margin
means that the company is
generating more profits from
each sale.
● Operating expenses ratio:
This measure indicates the
Internal
● Audit quality rate: This
measure tracks the percentage
of audits conducted by M that
meet or exceed industry
standards. This helps to
ensure that clients receive
high-quality audit services
that meet their needs and
expectations.
● Audit completion time: This
measure tracks the average
time it takes M to complete an
audit. This helps to ensure
that audits are completed in a
timely manner and that clients
receive their audit reports
promptly.
● Average time to resolve client
issues: This measure tracks
the amount of time it takes M
to address and resolve client
issues. This helps to ensure
that clients receive prompt
and effective support when
they encounter problems.
● Client retention rate: This
measure calculates the
Learning and growth
● Employee training hours
per year: This measure
tracks the number of hours
employees spend in
training programs each
year. This helps to ensure
that employees are
continuously developing
their skills and knowledge
to stay up-to-date with
industry trends and best
practices.
● Employee turnover rate:
This measure calculates the
percentage of employees
who leave the company
within a given time period.
High turnover rates can
indicate issues with
employee engagement, job
satisfaction, or leadership.
● Employee satisfaction rate:
This measure tracks how
satisfied employees are
with their work
environment,
compensation, benefits,
 expectations.
● Customer acquisition
cost: This measure
indicates how much it
costs the firm to acquire
new customers. It can be
calculated by dividing
the total marketing and
advertising expenses by
the number of new
customers acquired.
Lower acquisition costs
would indicate better
marketing efforts and ● Return on investment (ROI):
customer targeting. By
reducing customer
acquisition costs, M can
increase its profits and
improve its bottom line.
● Number of referrals:
This measure indicates
how many customers are
referring the firm's
services to others.
Higher numbers signify
greater customer
satisfaction and loyalty.
By encouraging
customers to refer their
friends and family, M
can increase its customer
proportion of operating
expenses to revenue. It can be
calculated by dividing total
operating expenses by total
revenue. A lower ratio
signifies better efficiency and
cost management. The
company can reduce
operating expenses by
identifying areas where costs
can be cut without
compromising the quality of
services.
This measure indicates the
profitability of investments
made by the company. ROI
can be calculated by dividing
the net profit by the total
investment. A higher ROI
means that the company is
generating more profits from
its investments. M can use
this measure to evaluate the
effectiveness of its
investment decisions and
identify opportunities for
improvement.
percentage of clients who
continue to work with M over
a given time period. This
helps to ensure that M is
meeting the needs of its
clients and providing high-
quality services.
● Utilization rate: This measure
tracks the percentage of time
that employees spend on
billable work. This helps to
ensure that M is utilizing its
resources efficiently and
effectively.
and overall experience
working at M. High
employee satisfaction rates
can lead to increased
productivity and better
client service.
● Number of new hires: This
measure tracks the number
of new employees hired by
M within a given time
period. This can help to
ensure that the company is
adequately staffed to meet
client demand and achieve
its business goals.
● Number of certifications
attained by employees:
This measure tracks the
number of professional
certifications obtained by
employees. This can help
to ensure that employees
have the necessary
qualifications to perform
their jobs effectively.
 base and generate more
revenue.
Hospitali Customer Measures: Financial Measures:
ty
1. Guest satisfaction rating:
Measuring guest
satisfaction through
surveys or feedback
forms can provide
valuable insights into
how well M is meeting
customers' needs and
expectations.
2. Repeat business rate:
This measure is the
percentage of guests
who return to M for
another stay. High repeat
business rates indicate
that customers are happy
with their experience at
M.
3. Net promoter score
(NPS): NPS measures
how willing guests are to
recommend M to others.
High NPS scores suggest
a strong brand reputation
and positive word-of-
1. Revenue growth: This
measure looks at how much
revenue has increased over a
period of time. For M, it may
be important to focus on
year-over-year revenue
growth or quarter-over-
quarter growth to track
progress and identify any
issues.
2. Gross profit margin: This
measure considers how much
revenue remains after
accounting for costs of goods
sold. M should aim to
maintain a high gross profit
margin while also avoiding
any undue pressure on
suppliers.
3. Return on investment (ROI):
ROI is the ratio between net
profit and the total
investment made. This helps
M evaluate whether
investments are profitable
Internal Business Process
Perspective:
1.Implement a strong quality control
process through supplier management
systems and supplier performance
evaluation mechanisms to ensure the
delivery of high-quality goods and
services to customers.
2. Streamline internal processes
through automation and digitization
of operational tasks, including
reservation management, billing,
housekeeping, and inventory
management.
3. Monitor key performance
indicators (KPIs) such as occupancy
rates, revenue per available room
(RevPAR), and labor costs, to track
performance and take corrective
action if needed.
Learning and Growth Perspective:
1. Develop an employee
training program that
covers a wide range of
hospitality skills and
knowledge, such as food
safety, customer service,
sales techniques, and
leadership.
2. Foster a culture of
innovation and creativity
among employees by
creating platforms to share
new ideas and feedback.
 mouth marketing.
4. Average length of stay:
This measure determines
the average number of
nights guests spend at
M. A higher average
length of stay suggests
that customers are
satisfied with the
accommodations and
amenities offered, which
can lead to increased
revenue over time.
Manufact 1. On-Time Delivery: This
ure measure refers to the
percentage of orders
delivered on or before
the scheduled delivery
date. It is important for a
manufacturing firm to
make sure that its
products are delivered
on time to meet the
expectations of its
customers.
2. Product Quality: This
measure focuses on the
quality of M's products
from the customers'
and where they should
allocate resources going
forward.
4. Cost per occupied room: This
measure examines the
expenses incurred per room
sold. By tracking this metric,
M can identify any
inefficiencies and adjust
pricing accordingly.
Financial Measures:
1. Return on investment (ROI):
ROI is the ratio between net
profit and the total
investment made. This helps
M evaluate whether
investments are profitable
and where they should
allocate resources going
forward.
2. Gross profit margin: This
measure considers how much
revenue remains after
accounting for costs of goods
sold. M should aim to
Internal Business Processes
Measures:
1. Manufacturing cycle time:
This measure looks at how
long it takes to produce a
product from start to finish.
Shorter cycle times suggest
more efficient processes.
2. Defect rate: This measure
determines the percentage of
products that need to be
reworked or scrapped due to
defects. A high defect rate
indicates that there may be
quality control issues that
Learning and Growth Measures:
1. Employee training and
development: This
measure tracks how many
employees have received
training and development
opportunities, such as
attending workshops or
earning certifications.
2. Employee turnover rate:
This measure looks at the
percentage of employees
who leave M within a
given period. High
employee turnover can
 perspective. It can be
measured by conducting
customer surveys or by
monitoring the number
of product defects 3. Operating expenses: This
reported by customers.
3. Customer Satisfaction:
This measure reflects
how satisfied customers
are with M's products
and services. It can be 4. Cash flow: Measuring the
measured using surveys
or other feedback
mechanisms to gather
customer opinions on
various aspects of M's
offerings.
4. Customer Loyalty: This
measure tracks the
percentage of customers
who remain loyal to M
and continue to purchase
their products over time.
It can be tracked through
repeat sales and
customer retention rates.
5. Customer Complaints:
This measure tracks the
number of complaints
received from customers
related to M's products
maintain a high gross profit
margin while also avoiding
any undue pressure on
suppliers.
measure tracks the cost of
running M's day-to-day
operations and can help
identify areas where costs can
be reduced.
amount of cash coming in
and going out of M can help
ensure that it has enough
liquidity to meet its financial
obligations.
need to be addressed.
3. Inventory turnover ratio: This
measure measures how many
times inventory is sold and
replaced over a given period.
A high inventory turnover
ratio suggests strong sales and
effective inventory
management.
4. Supply chain efficiency: This
measure evaluates how
effectively M manages its
suppliers and how quickly it
can receive raw materials and
supplies.
indicate issues with job
satisfaction or poor
management practices.
3. Innovation and research
and development (R&D):
By measuring the number
of new products or services
developed, patents filed,
and R&D investment, M
can ensure it's staying
current and competitive in
the market.
4. Employee engagement:
Measuring employee
engagement through
surveys or feedback forms
can provide valuable
insights into how well M is
meeting its employees'
needs and expectations.
 and services. It is
important to monitor and
address customer
complaints promptly to
maintain customer
satisfaction and loyalty.
Technolo 1. Customer Satisfaction:
gy This measure reflects
how satisfied customers
are with M's products
and services. It can be
measured using surveys
or other feedback
mechanisms to gather
customer opinions on
various aspects of M's
offerings.
2. Net Promoter Score
(NPS): This measure
indicates how likely
customers are to
recommend M's
products and services to
others. It is calculated by
subtracting the
percentage of detractors
from the percentage of
promoters.
3. Customer Loyalty: This
7. Revenue Growth: This
measure tracks the percentage
increase in M's total revenue
over time. It is a key indicator
of overall business
performance and can help
identify trends and
opportunities for growth.
8. Profitability: This measure
tracks M's ability to generate
profit from its operations. It
can be measured by tracking
net income, gross profit
margin, or operating profit
margin.
9. Return on Investment (ROI):
This measure tracks the
return that M earns on its
investments. It can be
measured by calculating the
ratio of net profit to total
investment.
10. Cash Flow Management:
13. Time-to-Market: This
measure tracks the time it
takes for M to bring new
products to market. This is
important in the fast-paced
world of technology where
speed to market is often a key
competitive advantage.
14. Quality Management: This
measure tracks M's efforts to
manage and improve the
quality of its products and
services. It can be measured
through customer feedback
and internal quality audits.
15. Operational Efficiency: This
measure tracks the efficiency
of M's internal business
processes, including
production, supply chain
management, and customer
service. It is important to
ensure that these processes are
19. Employee Training and
Development: This
measure tracks the level of
investment that M is
making in employee
training and development
programs to enhance the
skills and knowledge of its
workforce.
20. Innovation and New
Product Development:
This measure focuses on
M's ability to innovate and
develop new products that
meet the changing needs
and preferences of its
customers.
21. Employee Engagement:
This measure reflects the
level of employee
engagement and
satisfaction within M. It
can be measured through
 measure tracks the
percentage of customers
who remain loyal to M
and continue to purchase
their products over time.
It can be tracked through
repeat sales and
customer retention rates.
4. Customer Acquisition 11. Cost of Goods Sold (COGS):
Cost (CAC): This
measure tracks the
amount of money that M
spends to acquire new
customers. It is
important to manage
CAC effectively to 12. Capital Expenditures: This
ensure that customer
acquisition remains
sustainable and cost-
effective.
5. Market Share: This
measure tracks M's share
of the overall market in
which it operates. It can
be measured by tracking
revenue, unit sales, or
other market metrics.
6. Customer Complaints:
This measure tracks the
number of complaints
received from customers
This measure tracks M's
ability to manage its cash
flow effectively. It includes
monitoring cash inflows and
outflows, managing working
capital, and maintaining
appropriate levels of
liquidity.
This measure tracks the direct
costs associated with
producing M's products and
services. It is an important
metric for managing costs
and improving profitability.
measure tracks the amount of
money that M invests in
capital assets such as
equipment, buildings, and
infrastructure. It is important
to manage these expenditures
effectively to ensure that they
generate a positive return on
investment.
optimized to deliver high-
quality products and services
at a competitive price.
16. Productivity: This measure
tracks the productivity of M's
workforce and resources. It
can be measured by tracking
output per employee or unit of
input.
17. Cost Management: This
measure tracks M's efforts to
manage costs across its
business operations. This
includes monitoring expenses
associated with production,
research and development,
marketing, and other
functions.
18. Asset Utilization: This
measure focuses on how
effectively M utilizes its
physical and intellectual
assets to drive business
outcomes. It can be measured
by tracking metrics such as
equipment uptime, patent
filings, and software code
reuse.
employee surveys or other
feedback mechanisms to
gather opinions on various
aspects of the workplace
environment.
22. Talent Retention: This
measure tracks the
percentage of employees
who remain with M over
time. This is important
because it is often more
cost-effective to retain
existing talent than to
recruit and train new
employees.
23. Knowledge Management:
This measure tracks how
effectively M utilizes and
shares knowledge within
the organization. Effective
knowledge management
can help improve decision-
making, drive innovation,
and increase efficiency.
24. Leadership Development:
This measure focuses on
M's efforts to develop its
future leaders. It can be
measured by tracking the
number of leadership
development programs
 related to M's products
and services. It is
important to monitor and
address customer
complaints promptly to
maintain customer
satisfaction and loyalty.
Business 1. Customer Satisfaction:
This measure reflects
how satisfied customers
are with M's products
and services. It can be
measured using surveys
or other feedback
mechanisms to gather
customer opinions on
various aspects of M's
offerings.
2. Net Promoter Score
(NPS): This measure
indicates how likely
customers are to
recommend M's
products and services to
others. It is calculated by
subtracting the
percentage of detractors
from the percentage of
promoters.
1. Revenue Growth: This
measure tracks the percentage
increase in M's total revenue
over time. It is a key indicator
of overall business
performance and can help
identify trends and
opportunities for growth.
2. Profitability: This measure
tracks M's ability to generate
profit from its operations. It
can be measured by tracking
net income, gross profit
margin, or operating profit
margin.
3. Return on Investment (ROI):
This measure tracks the
return that M earns on its
investments. It can be
measured by calculating the
ratio of net profit to total
investment.
1. Operational Efficiency: This
measure tracks the efficiency
of M's internal business
processes, including
production, supply chain
management, and customer
service. It is important to
ensure that these processes are
optimized to deliver high-
quality products and services
at a competitive price.
2. Productivity: This measure
tracks the productivity of M's
workforce and resources. It
can be measured by tracking
output per employee or unit of
input.
3. Quality Management: This
measure tracks M's efforts to
manage and improve the
quality of its products and
services. It can be measured
offered, or by monitoring
the number of employees
who have been promoted
into leadership positions.
1. Employee Training and
Development: This
measure tracks the level of
investment that M is
making in employee
training and development
programs to enhance the
skills and knowledge of its
workforce.
2. Leadership Development:
This measure focuses on
M's efforts to develop its
future leaders. It can be
measured by tracking the
number of leadership
development programs
offered, or by monitoring
the number of employees
who have been promoted
into leadership positions.
3. Innovation and Creativity:
This measure assesses the
3. Customer Loyalty: This 4. Cash Flow Management:
measure tracks the
percentage of customers
who remain loyal to M
and continue to purchase
their products over time.
It can be tracked through
repeat sales and
customer retention rates.
4. Customer Acquisition 5. Cost of Goods Sold (COGS):
Cost (CAC): This
measure tracks the
amount of money that M
spends to acquire new
customers. It is
important to manage
CAC effectively to 6. Capital Expenditures: This
ensure that customer
acquisition remains
sustainable and cost-
effective.
5. Market Share: This
measure tracks M's share
of the overall market in
which it operates. It can
be measured by tracking
revenue, unit sales, or
other market metrics.
6. Customer Complaints:
This measure tracks the
number of complaints
This measure tracks M's
ability to manage its cash
flow effectively. It includes
monitoring cash inflows and
outflows, managing working
capital, and maintaining
appropriate levels of
liquidity.
This measure tracks the direct
costs associated with
producing M's products and
services. It is an important
metric for managing costs
and improving profitability.
measure tracks the amount of
money that M invests in
capital assets such as
equipment, buildings, and
infrastructure. It is important
to manage these expenditures
effectively to ensure that they
generate a positive return on
investment.
through customer feedback
and internal quality audits.
4. Time-to-Market: This
measure tracks the time it
takes for M to bring new
products to market. This is
important in the fast-paced
world of business where
speed to market is often a key
competitive advantage.
5. Supply Chain Management:
This measure tracks the
effectiveness of M's supply
chain management process,
including supplier relationship
management, inventory
management, and logistics
management.
6. Innovation and New Product
Development: This measure
focuses on M's ability to
innovate and develop new
products and services that
meet the changing needs and
preferences of its customers.
culture of innovation and
creativity within M. It can
be measured through
surveys or other feedback
mechanisms to gather
opinions on various aspects
of the organizational
culture.
4. Knowledge Management:
This measures M's
effectiveness in utilizing
and sharing knowledge
within the organization.
Effective knowledge
management can help
improve decision-making,
drive innovation, and
increase efficiency.
5. Employee Engagement:
This measure reflects the
level of employee
engagement and
satisfaction within M. It
can be measured through
employee surveys or other
feedback mechanisms to
gather opinions on various
aspects of the workplace
environment.
6. Talent Retention: This
measure tracks the
 received from customers percentage of employees
related to M's products who remain with M over
and services. It is time. This is important
important to monitor and because it is often more
address customer cost-effective to retain
complaints promptly to existing talent than to
maintain customer recruit and train new
satisfaction and loyalty. employees.

Health 1. Patient Satisfaction: This 1. Revenue Growth: This 1. Clinical Quality: This 1. Employee Training and
care / measure reflects how measure tracks the percentage measure tracks the quality of Development: This
Medicine satisfied patients are increase in M's total revenue healthcare services provided measure tracks the level of
s with M's healthcare over time. It is a key indicator by M. It can be measured investment that M is
services. It can be of overall business through various clinical making in employee
measured using surveys performance and can help indicators, such as mortality training and development
or other feedback identify trends and rates, readmission rates, and programs to enhance the
mechanisms to gather opportunities for growth. infection rates. skills and knowledge of its
patient opinions on 2. Profitability: This measure 2. Patient Safety: This measure healthcare workforce.
various aspects of M's tracks M's ability to generate tracks the level of patient 2. Leadership Development:
care. profit from its operations. It safety in M's healthcare This measure focuses on
2. Access to Care: This can be measured by tracking facilities. It can be measured M's efforts to develop its
measure tracks the ease net income, gross profit through various safety-related future healthcare leaders. It
of access that patients margin, or operating profit metrics, such as incidence of can be measured by
have to M's healthcare margin. hospital-acquired infections tracking the number of
services. It can be 3. Cost of Care: This measure and medication errors. leadership development
measured by tracking tracks the direct costs 3. Efficiency of Care Delivery: programs offered, or by
wait times, appointment associated with providing This measure tracks the monitoring the number of
availability, and other healthcare services to efficiency of M's internal employees who have been
access-related metrics. patients. It is an important business processes related to promoted into leadership
3. Health Outcomes: This metric for managing costs healthcare service delivery. It positions.
 measure tracks the
health outcomes of 4. Insurance Reimbursement
patients who receive
care from M. It can be
measured through
various health indicators,
such as mortality rates,
readmission rates, and
health status
improvements.
4. Preventive Care: This
measure focuses on M's
ability to provide 5. Capital Expenditures: This
preventive care services,
such as screenings and
vaccinations, to patients
to prevent future health
problems.
5. Patient Safety: This
measure tracks the level
of patient safety in M's
healthcare facilities. It
can be measured through 6. Accounts Receivable: This
various safety-related
metrics, such as
incidence of hospital-
acquired infections and
medication errors.
6. Patient Engagement:
This measure reflects the
level of patient
and improving profitability.
Rates: This measure tracks
the rates at which insurance
companies reimburse M for
the healthcare services it
provides. It is important to
manage these rates
effectively to ensure that they
cover the costs of care while
also generating a positive
return on investment.
measure tracks the amount of
money that M invests in
capital assets such as medical
equipment, buildings, and
infrastructure. It is important
to manage these expenditures
effectively to ensure that they
generate a positive return on
investment.
measure tracks the amount of
money owed to M by patients
and insurance companies for
healthcare services rendered.
It is important to manage
accounts receivable
effectively to ensure that cash
includes managing wait times,
reducing treatment delays,
and improving work
processes.
4. Access to Care: This measure
tracks the ease of access that
patients have to M's
healthcare services. It can be
measured by tracking wait
times, appointment
availability, and other access-
related metrics.
5. Staff Productivity: This
measure tracks the
productivity of M's healthcare
workforce. It can be measured
by tracking output per
employee or unit of input.
6. Technology Integration: This
measure tracks the integration
of technology into M's
healthcare service delivery
processes. It includes
electronic medical records,
telemedicine, and other
technological tools that
improve the efficiency and
effectiveness of care delivery.
3. Innovation and Creativity:
This measure assesses the
culture of innovation and
creativity within M's
healthcare organization. It
can be measured through
surveys or other feedback
mechanisms to gather
opinions on various aspects
of the organizational
culture.
4. Knowledge Management:
This measures M's
effectiveness in utilizing
and sharing knowledge
within the healthcare
organization. Effective
knowledge management
can help improve decision-
making, drive innovation,
and increase efficiency.
5. Patient Satisfaction with
Provider Communication:
This measure reflects the
level of patient
engagement and
satisfaction with
communication during the
care process. It can be
measured through patient
feedback and participation
 engagement and
empowerment within
M's healthcare services.
It can be measured
through patient feedback
and participation in their
own care process.
Musician ● Fan satisfaction scores:
s/ Art Measuring fan
satisfaction is essential
for an art/music firm to
understand how well
they are meeting the
needs and expectations
of their fans.
● Fan retention rate: The
percentage of fans who
continue to attend shows
and buy merchandise
indicates the loyalty of
the firm's fans.
● Social media
engagement: Measuring
social media
engagement (e.g. likes,
shares, comments) can
provide valuable insight
into the reach of the
flow remains healthy.
● Revenue growth: This
measure tracks the growth in
revenues over time. It is a
good indicator of the firm's
performance and the value it
provides to fans and clients.
● Profit margins: The profit
margin is a crucial metric for
any business as it indicates
the profitability of the firm's
operations.
● Cost-to-revenue ratio: This
ratio measures the cost of
running the firm relative to
the revenue generated.
Keeping this ratio low is
critical to maintaining
profitability.
● Tour-related expenses:
Touring can be costly, so
tracking expenses related to
● Time spent on rehearsals or
practice: A key metric for an
art/music firm is the time
spent on rehearsals or
practice. Measuring this can
help optimize processes and
improve efficiency.
● Number of successful
performances/shows: This
measure indicates the
effectiveness of the firm's
performance and production
process, which can be an
important factor in attracting
new fans and retaining
existing ones.
● Feedback from critics and
peers: Collecting feedback
from critics and peers can
help the firm identify its
strengths and weaknesses and
in their own care process.
6. Regulatory Compliance:
This measure tracks M's
ability to comply with
regulatory requirements,
such as HIPAA, OSHA,
and other healthcare
regulations.
● Number of workshops or
training sessions attended
by employees: This
measure indicates the
firm's investment in
employee learning and
development and their
readiness to adapt to
changing music/art trends.
● Employee satisfaction
scores: Regular surveys
can help measure the
employees' job satisfaction
and overall engagement
with the firm.
● Number of collaborations
with other artists or
musicians: This measure
shows the firm's ability to
form partnerships and
engage with others in the
 firm's brand and fanbase
growth.
● Number of social media
followers: This measure
indicates the reach of the
firm's brand and can
provide insight into
market trends.
● Number of media
mentions: Tracking the
number of times the firm
is mentioned in the
media can indicate the
firm's prominence in the
industry.
● Fan demographic data:
Collecting demographic
data (age, gender,
location, etc.) can help
the firm better
understand its fanbase
and tailor its offerings to
their needs and
preferences.
Law ● Client satisfaction
scores: Measuring client
satisfaction is essential
for a law firm to
understand how well
touring (travel, lodging, etc.)
can help the firm identify
areas where it can reduce
costs without sacrificing
quality.
● Merchandise sales per show:
Merchandise sales can be an
important source of revenue
for art/music firms. Tracking
merchandise sales per show
can help identify which
products are most popular
among fans.
● Sales growth by product type:
Analyzing sales growth by
product type (music,
merchandise, etc.) can help
the firm understand which
products are driving its
overall financial
performance.
● Revenue growth: This
measure tracks the growth in
revenues over time. It is a
good indicator of the firm's
performance and the value it
make necessary
improvements.
● Time spent on recording or
production: Measuring the
time spent on recording or
production can help optimize
processes and improve
efficiency in creating high-
quality works.
● Equipment maintenance costs:
Maintaining equipment is
essential for ensuring high-
quality productions. Tracking
maintenance costs can help
identify inefficiencies in
equipment use or when
repair/replacement may be
necessary.
● Average ticket sale price: This
metric shows the
effectiveness of pricing
strategies and can help
maximize revenue from live
performances.
● Time spent on client work: A
key metric for a law firm is
billable hours. Measuring the
time spent on client work can
help optimize processes,
industry.
● Number of new songs or
works created: This
measure indicates the
firm's ability to innovate
and produce new and
original music/art.
● Employee skill
assessments: Regular
assessments of employees'
skills can help identify
areas for improvement and
provide opportunities for
growth.
● Industry certifications
earned: Encouraging and
supporting employees to
earn industry-recognized
certifications leads to
better quality work and
increased credibility with
fans.
● Employee training hours
per year: This measure
indicates the firm's
investment in employee
development and their
 they are meeting the provides to clients. reduce waste, and improve readiness to adapt to
needs and expectations ● Profit margins: The profit efficiency. changing legal
of their clients. margin is a crucial metric for ● Case resolution time: This requirements.
● Client retention rate: The any business as it indicates measure indicates the speed ● Employee satisfaction
percentage of clients the profitability of the firm's and effectiveness of the firm's scores: Regular surveys
who return for additional operations. legal services, which can be can help measure the
legal services indicates ● Cost-to-revenue ratio: This an important factor in employees' job satisfaction
the loyalty of the firm's ratio measures the cost of attracting new clients and and overall engagement
clients. running the firm relative to retaining existing ones. with the firm.
● Net Promoter Score the revenue generated. ● Error rate: Accuracy is ● Recruitment and retention
(NPS): NPS is a widely Keeping this ratio low is paramount in legal work, so rates: The ability of the
used metric to measure critical to maintaining tracking the rate of errors can firm to attract and retain
customer loyalty. It can profitability. help identify areas for top talent is critical to its
provide valuable insight ● Accounts receivable turnover improvement. success. Measuring
into how likely clients ratio: This ratio measures the ● Percentage of cases resolved recruitment and retention
are to recommend the speed at which the firm out of court: This measure can rates can help track
firm to others. collects payments from provide insight into the progress over Average
● Number of referrals clients. A high ratio indicates effectiveness of legal strategy time to complete training:
received: This measure good cash management and a and negotiation skills, as well This measure indicates
indicates the level of low risk of bad debts. as reduce costs associated how quickly employees are
satisfaction and loyalty ● Operating expenses per with court proceedings. able to absorb new
among existing clients, lawyer: This measure shows ● Time spent on non-billable information and skills.
as they are more likely the efficiency of the firm in work: This measure can help ● Employee turnover rate:
to refer their friends and managing its expenses identify tasks and processes High turnover can be
colleagues to the firm if relative to the number of that could be streamlined or costly and disruptive. By
they are happy with their lawyers it employs. eliminated to increase billable tracking employee exits,
services. ● Return on investment (ROI) hours. the firm can identify areas
● Client feedback response for marketing and business ● Utilization rate: This metric for improvement in their
rate: Encouraging clients development efforts: calculates the percentage of HR policies and practices.
to provide feedback and Measuring the ROI of billable hours worked ● Number of professional
measuring the response marketing and business compared to the total certifications earned:
 rate can help the firm to development initiatives helps available working hours. A Encouraging and
identify areas for the firm to determine which high utilization rate indicates supporting employees to
improvement and strategies are most effective greater efficiency and earn industry-recognized
demonstrate its at attracting and retaining profitability. certifications leads to
commitment to quality clients. better quality service and
service. increased credibility with
● Number of new clients clients.
per month: Tracking the ● time.
number of new clients
acquired each month can
help the firm to
understand how well it is
attracting new business
and whether it needs to
adjust its strategy.

Investme
nt ● Client Satisfaction: ● Asset Under Management ● Investment Research: ● Professional Development:
Measure client (AUM) Growth: Measure the Measure the number of Measure the number of
satisfaction levels growth in total assets under investment research reports professional development
through surveys or management to gauge the generated, the accuracy of programs offered to
feedback mechanisms to company's ability to attract investment recommendations, investment professionals,
assess the quality of and retain clients. and the timeliness of research and the percentage of
investment services, ● Revenue Growth: Measure delivery. professionals who
responsiveness, and year-over-year revenue ● Portfolio Management participate in such
overall client experience. growth, total revenue Efficiency: Measure the activities.
● Client Retention: generated from investment portfolio turnover rate, ● Employee Satisfaction:
Measure the percentage services, or revenue per portfolio rebalancing Measure employee
of clients who continue client. frequency, and the ability to satisfaction levels through
their investment ● Profitability: Measure net align portfolios with client surveys or feedback
 relationship with M over
time, indicating their
satisfaction and loyalty.
● Investment Performance:
Measure the rate of
return on investment
portfolios compared to
relevant benchmarks,
such as market indices
or client-specific targets.
● Client Referrals:
Measure the number of
new clients or assets
generated through client
referrals, indicating
client satisfaction and
positive
recommendations.
Construc
tion ● Customer Satisfaction:
Measure customer
satisfaction levels
through surveys or
feedback mechanisms to
assess the quality of
construction projects,
adherence to
specifications, and
profit margin, return on
investment (ROI), and the
efficiency of cost
management in the
investment operations.
● Risk Management: Measure
the effectiveness of risk
management strategies and
controls in protecting client
investments and minimizing
losses.
● Revenue Growth: Measure
year-over-year revenue
growth, total revenue
generated from construction
projects, or revenue per
project.
● Profitability: Measure gross
profit margin, operating
profit margin, and return on
objectives.
● Investment Due Diligence:
Measure the thoroughness and
effectiveness of the due
diligence process for potential
investment opportunities.
● Compliance and Regulatory
Adherence: Measure
compliance with applicable
laws, regulations, and
industry standards, and the
effectiveness of internal
controls.
● Project Management
Efficiency: Measure the
percentage of projects
completed within budget,
adherence to project
schedules, and project scope
management.
● Safety Performance: Measure
the number of safety
mechanisms to assess
employee morale and
engagement.
● Knowledge Enhancement:
Measure the acquisition
and application of new
investment knowledge and
skills by employees, such
as certifications or
specialized training.
● Technological
Advancements: Measure
the integration and
utilization of technology in
investment processes, such
as data analytics, portfolio
management systems, or
algorithmic trading.
● Employee Training and
Development: Measure the
number of training
programs provided to
employees and the
percentage of employees
who participate in training
activities.
● Employee Satisfaction and

overall customer
experience. ● Cost Control: Measure
● On-time Delivery:
Measure the percentage
of construction projects
completed on or before
the agreed-upon
deadlines. ● Cash Flow Management:
● Quality of
Workmanship: Measure
the number of rework
requests, customer
complaints, and defects
identified in completed
projects.
● Customer Referrals:
Measure the number of
new projects or clients
generated through
customer referrals,
indicating customer
satisfaction and positive
word-of-mouth.
investment (ROI) for
construction projects.
project cost overruns, project
expenses as a percentage of
revenue, and the
effectiveness of cost
management processes.
Measure cash flow from
construction operations,
average collection period,
and working capital
management.
incidents, lost workdays due
to accidents, and adherence to
safety regulations.
● Construction Productivity:
Measure construction
productivity metrics such as
labor productivity, materials
utilization, and equipment
efficiency.
● Supplier and Subcontractor
Management: Measure the
performance of suppliers and
subcontractors, including on-
time delivery, quality of
materials, and subcontractor
satisfaction.
Retention: Measure
employee satisfaction
levels through surveys and
track employee turnover
rates to assess workforce
morale and engagement.
● Skills and Knowledge
Enhancement: Measure the
acquisition and application
of new skills and
knowledge by employees,
such as certifications or
specialized training.
● Technology Adoption:
Measure the integration
and utilization of
technology in construction
processes, such as
construction management
software, BIM (Building
Information Modeling), or
project tracking systems.

educatio
n ● Student Satisfaction: ● Revenue Growth: Measure ● Curriculum Development: ● Professional Development:
Measure student year-over-year revenue Measure the number of new Measure the number of
satisfaction through growth, total revenue programs or courses professional development
 surveys or feedback generated from educational developed, the time taken to opportunities provided to
mechanisms to assess programs, or revenue per develop and implement new faculty and staff, and the
the quality of student. curricula, and curriculum percentage of faculty and
educational programs, ● Cost Efficiency: Measure the alignment with industry staff who participate in
teaching effectiveness, cost per student, operating standards. such activities.
and overall student expenses as a percentage of ● Teaching Effectiveness: ● Employee Satisfaction:
experience. revenue, and cost control Measure the quality of Measure employee
● Student Retention: initiatives. teaching through student satisfaction levels through
Measure the percentage ● Return on Investment (ROI): evaluations, peer evaluations, surveys or feedback
of students who continue Measure the financial return or performance assessments. mechanisms to assess
their studies from one generated from specific ● Program/ Course Delivery: faculty and staff morale
academic year to the educational programs or Measure the efficiency and and engagement.
next, indicating their initiatives in relation to the effectiveness of ● Technology Integration:
satisfaction and loyalty. initial investment. program/course delivery, Measure the integration
● Placement Rate: ● Fundraising and Grants: including class sizes, student- and utilization of
Measure the percentage Measure the amount of funds to-teacher ratios, and student technology in educational
of students who secure raised through grants, engagement levels. processes, such as e-
employment or enroll in donations, or fundraising ● Timely Feedback and learning platforms, online
further education within efforts to support educational Assessment: Measure the assessments, or virtual
a specified period after initiatives. turnaround time for grading learning environments.
completing their studies. assignments, providing ● Research and Innovation:
● Program/ Course feedback to students, and Measure the number of
Completion Rate: conducting assessments. research projects
Measure the percentage undertaken by faculty, the
of students who publication of research
successfully complete papers, and innovation in
their chosen programs or teaching methods.
courses.
fashion
● Customer Satisfaction: ● Revenue Growth: Measure ● Supply Chain Efficiency: ● Employee Training and
Measure customer year-over-year revenue Measure the time taken from Development: Measure the
satisfaction levels growth, revenue per placing an order to delivery, number of training
through surveys or Net customer, and market share. order fulfillment accuracy, programs offered to
Promoter Score (NPS). ● Profitability: Measure gross and supplier performance. employees and the
● Market Share: Measure profit margin, operating ● Production Process percentage of employees
the company's market profit margin, and return on Efficiency: Measure who participate in training
share compared to investment (ROI). production cycle time, defect activities.
competitors in specific ● Cost Management: Measure rates, and adherence to ● Employee Satisfaction and
target markets. cost reduction initiatives, cost production schedules. Engagement: Measure
● Customer Retention: of goods sold, and operating ● Quality Control: Measure the employee satisfaction
Measure customer expenses as a percentage of percentage of defective through surveys and assess
retention rate, repeat revenue. products, customer employee engagement
purchases, and customer ● Cash Flow Management: complaints, and adherence to levels to ensure a
loyalty. Measure cash flow from quality standards. motivated workforce.
● Product/Service Quality: operations, cash conversion ● Cost Control: Measure ● Talent Acquisition and
Measure product/service cycle, and days of working production costs, overhead Retention: Measure
defects, customer capital. costs, and the efficiency of employee turnover rate,
complaints, and the cost management processes. time to fill vacant
number of positions, and the
product/service recalls. effectiveness of talent
acquisition strategies.
● Innovation and Research:
Measure the number of
new product or service
ideas generated, the
percentage of revenue
derived from new
products, and investment
in research and
 development.

Banking 1. Customer Satisfaction: 1. Revenue Growth: This 7. Operational Efficiency: This 1. Employee Training and
This measure reflects measure tracks the percentage measure tracks the efficiency Development: This
how satisfied customers increase in M's total revenue of M's internal business measure tracks the level of
are with M's banking over time. It is a key indicator processes, including loan investment that M is
services. It can be of overall business processing, customer service, making in employee
measured using surveys performance and can help and account management. It is training and development
or other feedback identify trends and important to ensure that these programs to enhance the
mechanisms to gather opportunities for growth. processes are optimized to skills and knowledge of its
customer opinions on 2. Profitability: This measure deliver high-quality services banking workforce.
various aspects of M's tracks M's ability to generate at a competitive cost. 2. Leadership Development:
services. profit from its operations. It 8. Productivity: This measure This measure focuses on
2. Customer Retention: can be measured by tracking tracks the productivity of M's M's efforts to develop its
This measure tracks the net income, gross profit workforce and resources. It future banking leaders. It
percentage of customers margin, or operating profit can be measured by tracking can be measured by
who remain with M over margin. output per employee or unit of tracking the number of
time. It is important to 3. Return on Investment (ROI): input. leadership development
manage customer This measure tracks the 9. Risk Management: This programs offered, or by
retention effectively return on investment measure tracks M's ability to monitoring the number of
because it is often more generated by M's financial manage risk effectively employees who have been
cost-effective to retain products or services. It is an through effective risk promoted into leadership
existing customers than important metric for management policies and positions.
to acquire new ones. managing risk and optimizing procedures. It includes credit 3. Innovation and Creativity:
3. Net Promoter Score profitability. risk, operational risk, market This measure assesses the
(NPS): This measure 4. Asset Quality: This measure risk, and other types of culture of innovation and
tracks the likelihood that tracks the quality of M's financial risk. creativity within M's
customers will assets, including loans and 10. Compliance: This measure banking organization. It
recommend M's banking investments. It is important to tracks M's adherence to can be measured through
services to others. It can manage asset quality regulatory requirements and surveys or other feedback
 be measured through
surveys or other
feedback mechanisms to 5. Liquidity: This measure
gather customer
opinions on their
willingness to
recommend M to others.
4. Product and Service
Offerings: This measure
tracks the quality and
diversity of M's product 6. Capital Adequacy: This
and service offerings. It
includes both traditional
banking products such as
loans and savings
accounts, as well as
newer services such as
mobile banking, online
banking, and digital
payment systems.
5. Service Quality: This
measure tracks the
quality of customer
service provided by M's
employees. It can be
measured through
surveys or other
feedback mechanisms to
gather customer
opinions on various
aspects of M's service
effectively to minimize credit
and market risks.
tracks M's ability to meet
short-term obligations
through available cash and
liquid assets. It ensures that
M can maintain its financial
stability and avoid liquidity
crises.
measure tracks whether M
has sufficient capital to
absorb potential losses. It
includes regulatory measures
such as the Tier 1 and Tier 2
capital ratios.
industry standards. It includes
compliance with laws and
regulations related to anti-
money laundering, consumer
protection, and data privacy,
among others.
11. Technology Integration: This
measure tracks the integration
of technology into M's
banking processes. It includes
online banking, mobile
banking, electronic payment
systems, and other
technological tools that
improve the efficiency and
effectiveness of service
delivery.
12. Data Analytics: This measure
tracks M's use of data
analytics to drive insights and
decision-making in its
banking operations. It
includes customer data, risk
management data, and other
operational data.
mechanisms to gather
opinions on various aspects
of the organizational
culture.
4. Knowledge Management:
This measures M's
effectiveness in utilizing
and sharing knowledge
within the banking
organization. Effective
knowledge management
can help improve decision-
making, drive innovation,
and increase efficiency.
5. Regulatory Compliance:
This measure tracks M's
ability to comply with
regulatory requirements,
such as anti-money
laundering (AML)
regulations, Bank Secrecy
Act (BSA) requirements,
and other banking
regulations.
6. Technological
Advancement: This
measure tracks M's
investments in new
technologies that can
provide better services to
customers such as online
 delivery.
6. Accessibility and
Convenience: This
measure tracks the ease
of access that customers
have to M's banking
services. It includes the
availability of physical
branches, ATMs, and
online and mobile
banking services.
marketin ● Client satisfaction
g scores: Measuring client
satisfaction is essential
for a marketing firm to
understand how well
they are meeting the
needs and expectations
of their clients.
● Client retention rate: The
percentage of clients
who continue to work
with the firm indicates
the loyalty of the firm's
clients.
● Net Promoter Score
(NPS): NPS is a widely
● Revenue growth: This
measure tracks the growth in
revenues over time. It is a
good indicator of the firm's
performance and the value it
provides to clients.
● Profit margins: The profit
margin is a crucial metric for
any business as it indicates
the profitability of the firm's
operations.
● Cost-to-revenue ratio: This
ratio measures the cost of
running the firm relative to
the revenue generated.
Keeping this ratio low is
● Time spent on client work: A
key metric for a marketing
firm is billable hours.
Measuring the time spent on
client work can help optimize
processes, reduce waste, and
improve efficiency.
● Campaign success rate: This
measure indicates the
effectiveness of the firm's
marketing campaigns and
helps identify areas for
improvement.
● Client feedback response rate:
Encouraging clients to
provide feedback and
banking, mobile banking,
digital payment solutions,
etc.
● Employee training hours
per year: This measure
indicates the firm's
investment in employee
development and their
readiness to adapt to
changing marketing trends.
● Employee satisfaction
scores: Regular surveys
can help measure the
employees' job satisfaction
and overall engagement
with the firm.
● Recruitment and retention
rates: The ability of the
firm to attract and retain
 used metric to measure
customer loyalty. It can
provide valuable insight ● Marketing campaign ROI:
into how likely clients
are to recommend the
firm to others.
● Response time to client
inquiries: Measuring the
response time to client
inquiries can indicate the ● Sales growth from new
level of dedication to
quality customer service.
● Average client lifetime
value: This metric
calculates the total
revenue generated by an
average client over the ● Overhead expenses per client:
course of their
relationship with the
firm, illustrating the
value of long-term client
relationships.
● Client referral rate:
Encouraging clients to
refer new business is
beneficial for the firm,
and measuring the
percentage of new
clients acquired through
referrals can indicate the
effectiveness of referral
critical to maintaining
profitability.
Calculating the return on
investment for each
marketing campaign can help
the firm understand which
campaigns are most effective
and profitable.
clients: Tracking the revenue
growth specifically from new
clients can help the firm
identify the effectiveness of
its business development
efforts.
This metric calculates the
overhead expenses associated
with serving each client,
helping the firm identify any
inefficiencies in its
operations.
measuring the response rate
can help the firm to identify
areas for improvement and
demonstrate its commitment
to quality service.
● Time spent on creative
concept development:
Measuring the time spent on
developing unique and
creative concepts can help
optimize processes and
improve the quality of
marketing campaigns.
● Project deadline adherence
rate: This metric measures the
percentage of projects
completed by their deadlines,
providing insight into the
efficiency of the project
management process.
● Percentage of team members
working on multiple client
projects: Working on too
many projects at once can
lead to inefficiency and lower
quality work. Measuring this
percentage can help the firm
identify when it may need to
adjust staffing levels or
project timelines.
top talent is critical to its
success. Measuring
recruitment and retention
rates can help track
progress over time.
● Number of industry
conferences attended: This
measure indicates the
firm's investment in
staying up-to-date with
marketing trends and best
practices.
● Employee skill
assessments: Regular
assessments of employees'
skills can help identify
areas for improvement and
provide opportunities for
growth.
● Number of industry
certifications earned:
Encouraging and
supporting employees to
earn industry-recognized
certifications leads to
better quality work and
increased credibility with
clients
●
 programs.

Retail
● Customer ● Revenue Growth: Monitor ● Inventory Management: ● Employee Training and
Satisfaction: Conduct the growth rate of overall Measure inventory turnover Development: Measure
regular surveys and revenue and segment- ratio and accuracy of the number of
analyze feedback to specific revenue. inventory records. employees who have
assess customer ● Profitability: Track and ● Supply Chain Efficiency: received training and
satisfaction levels. analyze profit margins, Track the time taken from development
● Customer Retention: gross margin per product order placement to product opportunities.
Track the rate at category, and sales per delivery. ● Employee Engagement:
which customers square foot. ● Store Operations: Monitor Conduct surveys to
return and measure ● Cost of Goods Sold key operational processes, assess employee
their loyalty to the (COGS): Measure the such as checkout speed satisfaction and
brand. efficiency of procurement and shelf replenishment. engagement levels.
● Average Transaction and inventory ● Cost Management: Track ● Skill Development: Track
Value: Measure the management in relation to and control costs the acquisition and
average amount spent COGS. associated with improvement of key
by customers per ● Return on Investment procurement, logistics, and skills among employees.
transaction. (ROI): Evaluate the store operations. ● Talent Retention:
● Market Share: Monitor profitability of investments Monitor turnover rates
the company's market in store expansions, and implement
share compared to technology, and marketing. strategies to retain top
competitors in the talent.
retail industry.