A "balanced scorecard" that includes both strategic and financial performance targets is a conceptually strong approach for judging a company's overall performance because
A) it assists managers in putting roughly equal emphasis on short-term and long-term performance targets.
B) it entails putting equal emphasis on good strategy execution and good business model execution.
C) a balanced-scorecard approach pushes managers to avoid Strategic Management that reflect the results of past decisions and organizational activities.
D) financial performance measures are lagging indicators that reflect the results of past decisions and organizational activities, whereas strategic performance measures are leading indicators of a company's future financial performance and business prospects.
E) it forces managers to put equal emphasis on financial and strategic objectives.

Question

Quizplus · Accepted Answer

The balanced scorecard approach is a strong approach for evaluating a company's overall performance because it includes both strategic and financial performance targets. This helps managers avoid focusing solely on financial measures, which are lagging indicators of a company's performance, and instead also consider strategic measures, which are leading indicators of a company's future financial success. The approach also helps managers balance short-term and long-term performance targets and emphasizes both good strategy execution and good business model execution. Therefore, the best choice is D.

A "Balanced Scorecard" That Includes Both Strategic and Financial Performance