What best describes the purpose of a balanced scorecard in organizational strategy?

The purpose of a balanced scorecard in organizational strategy is to offer a comprehensive view of business performance. This strategic management tool incorporates multiple perspectives to measure organizational success beyond just financial metrics. It typically includes financial performance, customer satisfaction, internal processes, and learning and growth, allowing organizations to assess their performance holistically.

By integrating these various perspectives, the balanced scorecard enables organizations to align their activities with their vision and strategy, improving strategic feedback and learning. This comprehensive approach ensures that businesses do not overlook crucial non-financial aspects that contribute to overall performance and long-term success. Instead of focusing solely on one aspect of the business, the balanced scorecard helps in identifying a broader range of performance indicators, fostering a more effective strategic execution and management process.