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Why does the balanced scorecard include both financial performance measures and non-financial measures? (This response should...

Why does the balanced scorecard include both financial performance measures and non-financial measures? (This response should be 200-250 words in length)

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Expert Solution

Balance Score card: The balanced scorecard (BSC) is a strategic planning and management system that organizations use to: Communicate what they are trying to accomplish. Align the day-to-day work that everyone is doing with strategy. Prioritize projects, products, and services.

The key benefits of using a Balanced Scorecard include: Better Strategic Planning- The Balanced Scorecard provides a powerful framework for building and communicating strategy. The business model is visualised in Strategy Maps which forces managers to think about cause-and-effect relationships.

The balanced scorecard (BSC) offers a superb blend of financial and non-financial measures ofperformance and provides executives with comprehensive framework that translates a company’s strategic objectives into a coherent set of performance measures and enables them to see the breadth and totality of company operation. However, theprinciples enunciated in the balanced scorecard metrics appears to be time consuming and costly to implement .

ekkarill92 answered 2 years ago
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