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 reflects 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 concept for judging a company's overall performance because it includes both strategic and financial performance targets. Financial measures are considered lagging indicators as they reflect past decisions and organizational activities, whereas strategic measures are leading indicators of future financial performance and business prospects. This approach helps managers focus on both short-term and long-term performance targets and avoid solely relying on past results. It also emphasizes the importance of both good strategy execution and good business model execution, making it a strong approach for overall performance evaluation.

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