General Studies · Strategic Management
An organization adopts a Balanced Scorecard but continues to reward managers solely on quarterly profits. After one year, innovation metrics stagnate. The most plausible explanation is:
- 1Overinvestment in intangible assets
- 2Excessive decentralization of performance metrics
- 3Inadequate benchmarking against industry competitors
- 4Overemphasis on the financial perspective crowding out learning and growth drivers✓
Correct answer
Overemphasis on the financial perspective crowding out learning and growth drivers
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