The balanced scorecard reduces managers' emphasis on short-run __________ performance (such as quarterly earnings)because the key strategic non-financial and operational indicators (such as product quality and customer satisfaction)measure changes that a company is making for the long run.

Question

Quizplus · Accepted Answer

The balanced scorecard includes both financial and non-financial measures. By incorporating key strategic non-financial and operational indicators, it encourages managers to focus not only on short-term financial performance but also on factors that will drive long-term success, such as product quality and customer satisfaction.

The Balanced Scorecard Reduces Managers' Emphasis on Short-Run __________ Performance