Which statement best describes the use or value of a balanced scorecard (BSC)?

Which statement best describes the use or value of a balanced scorecard (BSC)?

• A. It recognizes tangible assets such as employees and image.
• B. It supports only operations aspects.
• C. It reflects goals found in the strategic facility plan.
• D. It replaces the need to measure total cost of ownership (TCO).

Answer: (A)

The balanced scorecard (BSC) is a strategic planning and management tool that provides a framework for translating an organization's vision and strategy into a set of performance metrics across various perspectives. One key aspect of the BSC is that it goes beyond traditional financial measures to include factors that are crucial for long-term success, such as employee engagement and corporate image. By recognizing tangible assets like employees' skills and motivation, as well as the organization's reputation, the BSC helps organizations assess their performance in a more holistic way. This approach allows organizations to link their strategic objectives to tangible outcomes and track their progress toward achieving them. The other options do not fully capture the comprehensive nature of the BSC. While it does reflect goals in the strategic facility plan and can complement measures like the total cost of ownership (TCO), it does not exclusively focus on operations or diminish the importance of TCO; instead, it creates a balanced view by considering various factors that contribute to an organization's overall health and success.

The balanced scorecard (BSC) is a strategic planning and management tool that provides a framework for translating an organization's vision and strategy into a set of performance metrics across various perspectives. One key aspect of the BSC is that it goes beyond traditional financial measures to include factors that are crucial for long-term success, such as employee engagement and corporate image. By recognizing tangible assets like employees' skills and motivation, as well as the organization's reputation, the BSC helps organizations assess their performance in a more holistic way. This approach allows organizations to link their strategic objectives to tangible outcomes and track their progress toward achieving them.

The other options do not fully capture the comprehensive nature of the BSC. While it does reflect goals in the strategic facility plan and can complement measures like the total cost of ownership (TCO), it does not exclusively focus on operations or diminish the importance of TCO; instead, it creates a balanced view by considering various factors that contribute to an organization's overall health and success.