What does a balanced scorecard measure in relation to line control?

What does a balanced scorecard measure in relation to line control?

• A. Customer satisfaction only
• B. Performance across multiple perspectives
• C. Only financial metrics
• D. Employee happiness levels

Answer: (B)

A balanced scorecard is a strategic planning and management system that is used to align business activities to the vision and strategy of the organization. It measures performance across multiple perspectives including financial, customer, internal business processes, and learning and growth. This comprehensive approach allows organizations to evaluate not just the financial outcomes of their actions, but also how well they are meeting customer needs, optimizing internal processes, and fostering employee development. By taking into account these various dimensions, a balanced scorecard helps organizations understand how their strategies impact performance overall, rather than focusing on a single aspect such as customer satisfaction, financial indicators, or employee happiness. This holistic view supports better decision-making and strategic alignment, making it a vital tool in line control practices.

A balanced scorecard is a strategic planning and management system that is used to align business activities to the vision and strategy of the organization. It measures performance across multiple perspectives including financial, customer, internal business processes, and learning and growth. This comprehensive approach allows organizations to evaluate not just the financial outcomes of their actions, but also how well they are meeting customer needs, optimizing internal processes, and fostering employee development.

By taking into account these various dimensions, a balanced scorecard helps organizations understand how their strategies impact performance overall, rather than focusing on a single aspect such as customer satisfaction, financial indicators, or employee happiness. This holistic view supports better decision-making and strategic alignment, making it a vital tool in line control practices.