The balanced scorecard:
A) Is a tool used to communicate the organizational metrics using a traffic light approach (red/yellow/green).
B) Is a method used to evaluate the health of an organization by looking at all value drivers such as the customers, the workforce, the financials, and business processes.
C) Focuses its attention on an organization's financials.
D) Is used to communicate the TCO for an IT investment.
E) Is one of many metrics used to evaluate the value of an IT investment.

Question

Quizplus · Accepted Answer

The balanced scorecard is a method used to evaluate the health of an organization by looking at all value drivers such as the customers, the workforce, the financials, and business processes. It is a comprehensive tool, not limited to financials or IT investments, and provides a holistic view of the organization's performance. Option A is incorrect because the traffic light approach is just one way of communicating metrics on the scorecard. Option C and D are incorrect because the balanced scorecard is not solely focused on financials or IT investments. Option E is incorrect because the balanced scorecard is not just one of many metrics used to evaluate the value of an IT investment.

The Balanced Scorecard