Financial measures such as ROI are generally better than nonfinancial measures of key success drivers such as customer satisfaction as leading indicators of future financial performance.

a. true

b. false

Answer: False

Explanation:

Both Customer Satisfaction and Return on Investment are very useful indications of future financial Performance.

The Balanced Scorecard theorem posits that for a business to be strategically successful, it cannot look at one facet of performance such as financial Performance alone but needs to include the Customer perspective, the Internal Business processes as well as the Learning and Growth Perspective.

Practically speaking, while ROI tells you the amount of return that a company is getting on its Investment, customer satisfaction metrics will also tell you if the return on investment will be sustained because it is the customers that drive the profits so they work hand in hand.