Which of the following statements BEST describes the purpose of the balanced scorecard approach?
A) The goal of the balanced scorecard approach is to maximize profits.
B) The goal of the balanced scorecard approach is to maximize operational efficiency.
C) The goal of the balanced scorecard approach is to develop a set of organizational performance measures to assist the organization in implementing its strategies.
D) The goal of the balanced scorecard approach is to maximize shareholder wealth.

Question

Quizplus · Accepted Answer

The balanced scorecard approach aims to develop a set of performance measures that can help an organization implement its strategies effectively. It considers a range of perspective, including customer, internal processes, learning and growth, and financial. While financial performance is one of the perspectives, the ultimate goal is not just to maximize profits or shareholder wealth, but rather to ensure a balanced approach to performance measurement.

Which of the Following Statements BEST Describes the Purpose of the Balanced