Financial performance is the definitive criterion variable in
the model we propose in Figure 2. This placement reflects
the argument by Kaplan and Norton (1996, p. 36), who note
that “ultimately, causal paths from all the measures on a
scorecard should be linked to financial objectives.” As such,
profitability is the key to the GMO’s ability to remain a viable
entity and to satisfy its shareholders. From this perspective,
market performance is best viewed as an intermediate outcome
that facilitates the financial viability necessary for the
GMO to remain solvent. Thus: