Question

Which aspect of the balanced scorecard approach would be measured by

Answer 1

The correct answer is specific measures of what customers get

 

BSC (Balanced Scorecard) is an acronym that can be translated as Balanced Performance Indicators. The term Balanced Indicators is due to the fact that the choice of an organization's indicators is not restricted solely to the economic-financial focus. Organizations also use indicators focused on intangible assets such as: market performance with customers, performance of internal processes and people, innovation and technology. This is because the sum of these factors will leverage the performance desired by organizations, consequently creating future value.

Balanced Scorecard reflects the balance between short and long term objectives, between financial and non-financial measures, between indicators of trends and occurrences, and also, between the internal and external performance perspectives. This comprehensive set of measures serves as the basis for the measurement and strategic management system through which organizational performance is measured in a balanced way from the four perspectives. In this way, it helps companies to track financial performance, while monitoring progress in building capacity and acquiring the intangible assets needed for future growth.